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Is Amcor a Good Dividend Stock to Invest In?

Published 08/27/2021, 10:39 AM
Updated 08/27/2021, 11:30 AM
© Reuters.  Is Amcor a Good Dividend Stock to Invest In?

Switzerland-based Amcor (NYSE:AMCR) recently reported impressive fiscal year earnings results and declared a $0.12 quarterly dividend payable next month. But can the stock maintain its business momentum as COVID-19 cases continue to rise? Let’s find out.Headquartered in Zurich, Switzerland, established packaging company Amcor plc (AMCR) has grown significantly over the past few years, especially after completing the acquisition of the Bemis Company (NYSE:BMS_old) in June 2019. AMCR recently declared a $0.12 quarterly dividend, payable on September 28, which cumulates to a $0.47 annual dividend and a 3.65% yield. This compares to its 1.77% four-year average dividend yield.

Also, on August 16, AMCR announced its plans to build two new state-of-the-art innovation centers in Belgium and China.

The stock has gained 10.1% over the past month to close yesterday’s trading session at $12.65. It is currently trading 2.1% below its $12.92 all-time price high, which it hit on August 25, 2021. However, AMCR recently witnessed a decline in hedge fund sentiment, and rising COVID-19 cases due to the rapid spread of its Delta variant have fostered an uncertain near-term outlook for the company because its earnings and free cash flow could be significantly impacted.

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