Graphic Packaging (NYSE:GPK) Holding Company (NYSE:GPK) has announced it will distribute dividends on January 5th at a rate of $0.10 per share, which represents a yield of 1.8%. This decision reflects the company's robust earnings coverage and cash-generation capabilities. With an anticipated earnings per share (EPS) increase of 27.6% next year and a projected sustainable payout ratio of 15%, Graphic Packaging (NYSE:PKG)'s dividend policy appears to be well-supported.
Since its inception in 2014, Graphic Packaging has consistently increased its dividends, growing from an annual $0.20 to $0.40, achieving a compound annual growth rate (CAGR) of 8.0%. This growth is particularly noteworthy as the company has not yet experienced a full economic cycle. The potential for future dividend growth seems promising, bolstered by a five-year EPS growth rate of 15% per year and a low payout ratio, positioning the firm as an attractive option for income-seeking investors.
InvestingPro Insights
InvestingPro's real-time data and tips provide valuable insights into Graphic Packaging Holding Company's (NYSE:GPK) performance and potential. With a market cap of $6780 million and a P/E ratio of 10.04, the company presents a strong investment opportunity. The PEG ratio as of Q3 2023 stands at an attractive 0.14, indicating potential for growth. Moreover, the company has demonstrated a revenue growth of 5.78% in the last twelve months as of Q3 2023, despite a quarterly dip of -4.16% in Q3 2023.
InvestingPro Tips further highlight that Graphic Packaging yields a high return on invested capital and has consistently increased its earnings per share. This strong earnings performance should enable the company to continue its dividend payments, a key factor for income-seeking investors. However, investors should note the recent slowdown in revenue growth and the increase in total debt over consecutive years.
InvestingPro's comprehensive platform offers a wealth of additional tips and metrics, currently available at a special Black Friday discount of up to 55%. This includes insights into companies like Graphic Packaging, which exhibits a strong return over the last five years and is predicted to remain profitable this year. With InvestingPro, investors can make informed decisions backed by real-time data and expert insights.
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