LAKE FOREST, Ill. – Packaging (NYSE:PKG) Corporation of America (NYSE: PKG) has declared a regular quarterly dividend of $1.25 per share on its common stock, the company stated today. The dividend is payable to shareholders of record as of June 14, 2024, with the distribution date slated for July 15, 2024.
The company, known as PCA, currently stands as the third-largest producer of containerboard products and a prominent producer of uncoated freesheet paper in North America. PCA's operations include eight paper mills and 86 corrugated products plants along with related facilities.
This announcement reflects the company's ongoing commitment to return value to its shareholders. However, the declaration of any future quarterly dividends, as well as the setting of record and payment dates, remains at the discretion of PCA's Board of Directors.
PCA's performance and its decisions regarding dividends are closely watched by investors as indicators of the company's financial health and its confidence in sustained profitability. Dividends are typically paid out from earnings, and the ability to maintain or increase the dividend payout can be a sign of a company's stable or improving financial position.
InvestingPro Insights
Packaging Corporation of America (NYSE: PKG) continues to demonstrate its commitment to shareholder returns, not only through its recent dividend declaration but also by maintaining a consistent track record of dividend payments. According to InvestingPro, the company has impressively raised its dividend for 22 consecutive years, which signals a strong and stable financial foundation.
InvestingPro Data highlights a robust market capitalization of 15.9 billion USD, with a Price/Earnings (P/E) ratio of 22.27, which adjusts to 21.03 when considering the last twelve months as of Q1 2024. This P/E ratio suggests that the company is valued favorably in comparison to its earnings. The company's dividend yield stands at 2.79%, as of the last recorded date, reflecting a meaningful return to investors in the form of dividends.
An InvestingPro Tip that investors may find particularly interesting is that the stock generally trades with low price volatility, which could be appealing to those looking for stable investment options in the current market environment. Additionally, the company's cash flows can sufficiently cover interest payments, indicating financial resilience and a lower risk of distress from debt obligations.
For more in-depth analysis and additional InvestingPro Tips, investors can explore the full suite of tools available on InvestingPro. Currently, there are 9 more tips listed that could provide further insights into PCA's financial health and market performance. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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