Packaging Corporation of America declares $1.25 quarterly dividend

Published 20/08/2025, 21:38
Packaging Corporation of America declares $1.25 quarterly dividend

LAKE FOREST, Ill. - Packaging Corporation of America (NYSE:PKG) announced Wednesday that its Board of Directors has approved a regular quarterly dividend of $1.25 per share on its common stock. The company has maintained dividend payments for 23 consecutive years, with the current dividend yield standing at 2.52%.

The dividend will be paid on October 15, 2025, to shareholders of record as of September 15, 2025, according to a press release from the company.

PCA, which identifies itself as the third largest producer of containerboard products and a leading producer of uncoated freesheet paper in North America, operates eight paper mills and 85 corrugated products plants and related facilities.

The company noted that future declarations of quarterly dividends and the establishment of future record and payment dates remain subject to final determination by its Board of Directors. For deeper insights into PKG’s financial health and growth potential, InvestingPro subscribers can access comprehensive analysis and 10 additional exclusive ProTips.

In other recent news, Packaging Corporation of America announced the pricing of $500 million in senior notes due in 2035, with the transaction expected to close soon. The net proceeds, estimated at approximately $495.1 million, will be used to finance the acquisition of Greif Inc.’s containerboard business. This acquisition, valued at $1.8 billion, includes two mills and eight sheet feeder and corrugated plants, with the transaction anticipated to close by the end of the third quarter of 2025. Greif’s containerboard business reported $1.2 billion in sales and $212 million in EBITDA for the year ending April 30, 2025.

Citi has maintained its Neutral rating on Packaging Corporation of America, with a price target of $197.00, ahead of the company’s upcoming second-quarter earnings report. The bank forecasts a second-quarter EBITDA increase of 11% year-over-year to $447 million, slightly above consensus estimates. This growth is attributed to modest volume increases and price improvements in the Packaging segment, while the Paper segment is expected to remain stable. Additionally, the closure of Cascades Inc.’s Niagara Falls facility is noted as part of an optimization strategy, potentially impacting the broader sector.

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