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What Dividend Did Packaging Corporation of America Declare?

Gabriel Kane

Yesterday’s Consumer Pops and Drops: HRL, FLO, IP, BGS, and WHR

(Continued from Prior Part)

Price movement

Packaging Corporation of America (PKG) has a market capitalization of $6.2 billion. It fell by 1.1% to close at $64.39 per share on May 18, 2016.

The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -2.7%, 2.1%, and 3.2%, respectively, as of the same date. This means that PKG is trading 1.6% below its 20-day moving average, 4.9% above its 50-day moving average, and 5.3% above its 200-day moving average.

Related ETFs and peers

The iShares Global Timber & Forestry ETF (WOOD) invests 3.8% of its holdings in PKG. The ETF tracks the 25 largest publicly listed companies that own or manage forests and timberlands. The YTD price movement of WOOD was -2.3% as of May 18, 2016.

The market capitalizations of PKG’s competitors are as follows:

  • International Paper (IP) — $16.8 billion
  • WestRock Company (WRK) — $9.4 billion
  • Domtar (UFS) — $2.3 billion

PKG’s dividend

Packaging Corporation of America has declared a regular dividend of $0.55 per share on its common stock. The dividend will be paid on July 15, 2016, to shareholders on record at the close of business on June 15, 2016.

PKG’s 1Q16

Packaging Corporation of America reported 1Q16 net sales of $1.40 billion, a fall of 1.7% compared its net sales of $1.42 billion in 1Q15. Sales of its packaging and paper segments fell by 0.35% and 5.7%, respectively, in 1Q16 compared to 1Q15.

The company’s cost of sales as a percentage of net sales fell by 2.4%, and its operating income rose by 15.1% in 1Q16 compared to the prior year’s period.

Its net income and EPS (earnings per share) rose to $102.6 million and $1.09, respectively, in 1Q16, compared to $89.6 million and $0.92, respectively, in 1Q15. It reported non-GAAP (generally accepted accounting principles) EBITDA (earnings before interest, tax, depreciation, and amortization) of $269.5 million in 1Q16, a rise of 7.6% compared to 1Q15.

In the next part, we’ll look at Dr Pepper Snapple Group.

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