Packaging Corp sets regular dividend at $1.25 per share

Published 26/02/2025, 22:10
Packaging Corp sets regular dividend at $1.25 per share

LAKE FOREST, Ill. - Packaging (NYSE:PKG) Corporation of America (NYSE: PKG), currently valued at nearly $19 billion in market capitalization, has declared a regular quarterly dividend of $1.25 per share on its common stock, as confirmed by the company’s Board of Directors. Shareholders on record as of March 14, 2025, will be eligible for the dividend, which is scheduled for disbursement on April 15, 2025. The continuation of future quarterly dividends will hinge on the Board’s ongoing assessments and decisions. InvestingPro data shows PKG has maintained dividend payments for 22 consecutive years, with a current yield of 2.35%.

As a prominent entity in the paper and packaging industry, Packaging Corporation of America holds the position of the third-largest producer of containerboard products in North America. Additionally, the company is recognized as a leading producer of uncoated freesheet paper. PCA’s operational footprint includes eight paper mills and a network of 86 corrugated products plants and associated facilities across the continent. According to InvestingPro analysis, the company maintains strong financial health with robust cash flows and low price volatility, making it an interesting option for stability-focused investors. Get access to 8 more exclusive ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports.

This dividend announcement is in line with the company’s practice of providing shareholder returns and reflects its financial policies. The declaration of dividends is a routine aspect of PCA’s financial operations, subject to the Board’s discretion based on the company’s performance and market conditions.

Investors and stakeholders should note that this information is based on a press release statement. As with all dividend payments, investors are advised to monitor the company’s financial health and market trends for any potential changes in future dividend declarations.

In other recent news, Packaging Corporation of America (PCA) reported its fourth-quarter 2024 earnings, revealing a minor miss on earnings per share (EPS) compared to analyst forecasts. The company posted an EPS of $2.47, slightly below the forecast of $2.51, yet it exceeded revenue expectations with $2.15 billion in sales. Truist Securities adjusted its price target for PCA shares to $265 from $282, maintaining a Buy rating, highlighting the company’s impressive track record over the last six quarters. PCA’s guidance for the first quarter of 2025 projects an EPS of $2.21, lower than both Truist Securities’ estimate of $2.38 and the market consensus of $2.45.

Additionally, PCA announced significant executive changes, with Robert P. Mundy stepping down as CFO, to be succeeded by Kent A. Pflederer. Thomas A. Hassfurther will become President, while D. Ray Shirley will take on the role of Executive Vice President, Corrugated Products. The company also plans price increases effective January 1, with a $70 per ton increase on linerboard and a $90 per ton increase on medium, alongside box price adjustments. These strategic moves are part of PCA’s efforts to strengthen its leadership and position the company for future growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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