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

Packaging Corporation of America (NYSE:PKG) announced a quarterly dividend on Tuesday, May 12th. Stockholders of record on Monday, June 15th will be given a dividend of 1.50 per share by the industrial products company on Wednesday, July 15th. This represents a c) dividend on an annualized basis 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 payment by an average of 0.1%annually over the last three years. Packaging Corporation of America has a payout ratio of 45.5% meaning its dividend is sufficiently covered by earnings. Equities research 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 Trading Down 0.3%

Shares of NYSE:PKG traded down $0.57 during trading on Wednesday, reaching $219.38. The stock had a trading volume of 194,757 shares, compared to its average volume of 1,007,376. The firm’s fifty day moving average is $214.73 and its 200 day moving average is $213.44. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.94 and a current ratio of 3.07. Packaging Corporation of America has a 52 week low of $184.76 and a 52 week high of $249.51. The stock has a market cap of $19.55 billion, a price-to-earnings ratio of 26.73, a P/E/G ratio of 2.00 and a beta of 0.81.

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

Analyst Upgrades and Downgrades

A number of research firms have recently commented on PKG. Weiss Ratings raised shares of Packaging Corporation of America from a “hold (c+)” rating to a “buy (b)” rating in a research note on Monday. Truist Financial reaffirmed a “buy” rating and issued a $258.00 price objective (down from $260.00) on shares of Packaging Corporation of America in a research note on Monday, April 27th. Deutsche Bank Aktiengesellschaft raised shares of Packaging Corporation of America from a “hold” rating to a “buy” rating and upped their price objective for the company from $225.00 to $256.00 in a research note on Monday, May 4th. UBS Group upped their price objective on shares of Packaging Corporation of America from $225.00 to $232.00 and gave the company a “neutral” rating in a research note on Tuesday, April 28th. Finally, Citigroup reduced their price objective on shares of Packaging Corporation of America from $227.00 to $217.00 and set a “neutral” rating on the stock in a research note on Tuesday, April 14th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, Packaging Corporation of America has an average rating of “Moderate Buy” and an average price target of $234.29.

Packaging Corporation of America Company Profile

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.