Packaging Corporation of America (NYSE:PKG) Raises Dividend to $1.50 Per Share

Packaging Corporation of America (NYSE:PKG) declared a quarterly dividend on Tuesday, May 12th. Stockholders of record on Monday, June 15th will be paid a dividend of 1.50 per share by the industrial products company on Wednesday, July 15th. This represents a c) annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend is Monday, June 15th. This is a 20.0% increase from Packaging Corporation of America’s previous quarterly dividend of $1.25.

Packaging Corporation of America has raised its dividend by an average of 0.1%per year over the last three years. Packaging Corporation of America has a payout ratio of 45.5% meaning its dividend is sufficiently covered by earnings. Analysts expect Packaging Corporation of America to earn $12.49 per share next year, which means the company should continue to be able to cover its $5.00 annual dividend with an expected future payout ratio of 40.0%.

Packaging Corporation of America Price Performance

Shares of NYSE:PKG traded down $0.57 during midday trading on Wednesday, hitting $219.38. The stock had a trading volume of 194,757 shares, compared to its average volume of 1,007,376. The company’s 50-day moving average price is $214.73 and its 200-day moving average price is $213.44. The company has a market capitalization of $19.55 billion, a P/E ratio of 26.73, a price-to-earnings-growth ratio of 2.00 and a beta of 0.81. The company has a quick ratio of 1.94, a current ratio of 3.07 and a debt-to-equity ratio of 0.87. Packaging Corporation of America has a fifty-two week low of $184.76 and a fifty-two week high of $249.51.

Packaging Corporation of America (NYSE:PKG) last released its quarterly earnings data on Wednesday, April 22nd. The industrial products company reported $2.40 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.17 by $0.23. The business had revenue of $2.37 billion during the quarter, compared to analysts’ expectations of $2.45 billion. Packaging Corporation of America had a net margin of 8.04% and a return on equity of 19.27%. The firm’s quarterly revenue was up 10.6% compared to the same quarter last year. During the same period in the prior year, the company earned $2.31 EPS. Packaging Corporation of America has set its Q2 2026 guidance at 2.330-2.330 EPS. As a group, equities research analysts predict that Packaging Corporation of America will post 10.81 EPS for the current fiscal year.

Hedge Funds Weigh In On Packaging Corporation of America

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its position in Packaging Corporation of America by 0.5% in the 4th quarter. Vanguard Group Inc. now owns 11,279,442 shares of the industrial products company’s stock valued at $2,326,159,000 after acquiring an additional 51,790 shares during the period. State Street Corp increased its position in Packaging Corporation of America by 1.3% in the 4th quarter. State Street Corp now owns 4,185,761 shares of the industrial products company’s stock valued at $868,349,000 after acquiring an additional 54,884 shares during the period. Charles Schwab Investment Management Inc. increased its position in Packaging Corporation of America by 2.5% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 3,478,505 shares of the industrial products company’s stock valued at $717,372,000 after acquiring an additional 83,978 shares during the period. JPMorgan Chase & Co. increased its position in Packaging Corporation of America by 7.5% in the 4th quarter. JPMorgan Chase & Co. now owns 3,316,670 shares of the industrial products company’s stock valued at $683,997,000 after acquiring an additional 231,474 shares during the period. Finally, Price T Rowe Associates Inc. MD increased its position in Packaging Corporation of America by 2.7% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,816,736 shares of the industrial products company’s stock valued at $580,897,000 after acquiring an additional 73,047 shares during the period. 89.78% of the stock is currently owned by institutional investors and hedge funds.

About Packaging Corporation of America

Packaging Corporation of America (NYSE: PKG) is a leading North American manufacturer of containerboard and corrugated packaging products. The company produces a range of paper-based packaging solutions including linerboard, corrugating medium, corrugated shipping containers, retail-ready packaging and point-of-purchase displays. In addition to core packaging products, Packaging Corporation of America offers packaging design, testing and supply-chain services intended to optimize protection, cost and sustainability for customers.

Headquartered in Lake Forest, Illinois, the company operates an integrated network of mills and corrugated manufacturing facilities across the United States and serves customers throughout North America in industries such as e-commerce, grocery and food & beverage, consumer packaged goods and industrial markets.