Packaging Corporation of America Announces 27% Dividend Increase

Rhea-AI Summary

Packaging Corporation of America (NYSE: PKG) announced a significant increase in its quarterly cash dividend to an annual amount of $4.00 per share, up from $3.16, reflecting a 27% rise. The first dividend of $1.00 per share will be paid on January 15, 2021 to shareholders of record by December 21, 2020. This move highlights PCA's operational and financial strength, as emphasized by CEO Mark W. Kowlzan, who reaffirmed the company’s commitment to generating value for shareholders.

Positive

• 27% increase in annual dividend from $3.16 to $4.00 per share.
• $1.00 per share quarterly dividend commencing January 15, 2021.
• Demonstrates PCA's operational and financial strength.

Negative

• None.

LAKE FOREST, Ill.--(BUSINESS WIRE)--Packaging Corporation of America (NYSE: PKG) announced today that it intends to increase the quarterly cash dividend on its common stock to an annual payout of $4.00 per share from $3.16 per share, a 27% increase. The first quarterly dividend of $1.00 per share will be paid to shareholders of record as of December 21, 2020 with a payment date of January 15, 2021. Future declaration of quarterly dividends and the establishment of future record and payment dates are subject to the final determination by PCA’s Board of Directors.

Commenting on today’s announcement, Mark W. Kowlzan, Chairman & CEO of PCA, said, “Today’s announcement of an increase in our dividend demonstrates PCA’s overall operational and financial strength, as well as our disciplined and balanced approach to capital allocation. We are committed to generating value for our shareholders.”

PCA is the third largest producer of containerboard products and the third largest producer of uncoated freesheet paper in North America. PCA operates eight paper mills and 92 corrugated products plants and related facilities.