3 Dividend Leaders Set for Strong Growth in 2025Packaging Corporation of America NYSE: PKG reported lower adjusted earnings for the second quarter of 2026 compared with the prior year, even as sales and EBITDA increased, with management citing strong corrugated demand, higher freight costs and contributions from the recently acquired Greif containerboard business.
Chairman and Chief Executive Officer Mark Kowlzan said the company reported second-quarter net income of $192 million, or $2.15 per share. Excluding special items, net income was $210 million, or $2.35 per share, compared with $224 million, or $2.48 per share, in the second quarter of 2025. Net sales rose to $2.5 billion from $2.2 billion a year earlier, while total company EBITDA excluding special items increased to $486 million from $451 million.
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Packaging Corporation of America: Buy The DipKowlzan said special items totaled $0.20 per share and were primarily related to facility closure costs and write-offs, Wallula Mill restructuring charges, and expenses tied to the acquisition and integration of the Greif containerboard business.
Excluding special items, earnings declined by $0.13 per share from the year-ago quarter. Kowlzan said legacy business earnings were down $0.27 per share, partly offset by $0.14 per share of earnings from the acquired Greif business. The legacy decline was driven by several cost pressures, including higher freight, corporate and other expenses, lower price and mix in packaging, higher labor and operating costs, and higher fiber costs. Those headwinds were partly offset by higher production and sales volumes in packaging and paper, lower maintenance outage expense, and improved paper pricing and mix.
Packaging Corporation of America: A Total Package to Buy and Hold“We exceeded our guidance of $2.33 on the strength of our corrugated volumes, which helped drive cost favorability in areas that we could control and offset higher than forecast costs for freight, recycled fiber, and employee benefits,” Kowlzan said. He added that Greif’s earnings contribution also exceeded expectations.
Packaging Demand Remains Strong In the packaging segment, EBITDA excluding special items was $489 million on sales of $2.3 billion, resulting in a margin of 21.1%. That compared with EBITDA of $453 million on sales of $2 billion, or a 22.6% margin, in the second quarter of 2025.
The company produced 1.415 million tons of containerboard during the quarter. Legacy mills produced 1.209 million tons, roughly even with the first quarter and 14,000 tons above the prior-year period. Acquired mills produced 206,000 tons, which Kowlzan said significantly exceeded their production in any quarter since the acquisition.
President Thomas Hassfurther said corrugated operations “turned in yet another very strong quarter.” Shipments were up more than 24% in total and per day versus last year, with the legacy business up 4.1% and achieving an all-time record for total quarterly shipments. Hassfurther said demand was very strong across the company’s customer base, with particular strength in e-commerce related to Amazon Prime Day and related customers.
Hassfurther said domestic containerboard and corrugated products prices and mix were $0.11 per share below the second quarter of 2025 but $0.04 per share above the first quarter of 2026. He said the company began realizing the first announced price increase in June, expects most of that increase to roll in during July, and expects the second increase to begin in August with realization split between the third and fourth quarters.
The company reduced export containerboard sales during the quarter to build inventory for its corrugated plants. Export volume was 30,000 tons below the first quarter and 22,000 tons below the second quarter of 2025. Hassfurther said the company was able to meaningfully increase inventories in early July and described the current market environment in one word during the question-and-answer session: “tight.”
Greif Integration Exceeds Expectations Management said the acquired Greif business contributed $0.14 per share to earnings in the quarter, above expectations. Chief Financial Officer Kent Pflederer said $0.04 of that contribution came from a depreciation benefit tied to measurement-period adjustments to the valuation of fixed assets on the opening balance sheet. Excluding that benefit, Pflederer said the outperformance was driven largely by higher volumes and strong operational performance.
Hassfurther said PCA now views the acquired business as fully integrated and is operating it as one unit with the legacy business. Pflederer said the transition services agreement with Greif will run through the end of the year as the company brings remaining corrugated plants and one mill-related system onto PCA systems. He said three more plants are expected to transition in the third quarter and the final facilities in the fourth quarter.
Pflederer said PCA is on track, and possibly ahead, on Greif-related synergies. He cited mill production improvements and better reliability, as well as integration benefits that are beginning to show in the numbers. He said the company is “probably” on track to exceed a $30 million run rate by year-end.
Paper Segment Posts Higher Margins The paper segment reported EBITDA excluding special items of $39 million on sales of $157 million, for a 24.9% margin. That compared with EBITDA of $30 million on sales of $146 million, or a 20.8% margin, in the second quarter of 2025.
Kowlzan said paper sales volume was about 3% below the first quarter but about 6% above the second quarter of 2025. Prices and mix were up 2% from both the first quarter of 2026 and the prior-year quarter. He said the company continues to implement previously announced paper price increases and expects to benefit in the third quarter.
Costs, Outages and Capital Spending in Focus Pflederer said cash provided by operations was $376 million, and free cash flow was $170 million after $206 million of capital expenditures. Other cash uses included dividend payments of $111 million, cash tax payments of $78 million and net interest payments of $54 million. PCA did not repurchase shares during the quarter.
The company continues to forecast 2026 capital expenditures of $840 million to $870 million and depreciation, depletion and amortization of about $710 million, excluding special items. Pflederer said outage expense was $0.34 per share in the second quarter and is now estimated at $0.30 in the third quarter and $0.63 in the fourth quarter, for a full-year total of $1.41 per share.
Kowlzan said operational performance in the quarter was mixed because of production interruptions from utility power outages across the mill system. In response to a question, Pflederer said the outages likely affected production by about 10,000 tons. Kowlzan said the disruptions reinforced the need for gas turbine projects at three key facilities, which he said should reduce or eliminate reliance on the grid at those mills.
Kowlzan said a gas turbine project at the Jackson Mill is in construction and is targeted to come online next year in coordination with Jackson’s annual outage. Projects at Riverville, Virginia, and DeRidder, Louisiana, are moving through environmental permitting, with Kowlzan indicating those units could come online in the first to middle part of 2028.
Third-Quarter Guidance Calls for Higher Earnings Looking ahead, Kowlzan said PCA expects continued strong packaging demand, increased corrugated products volume due to one additional shipping day, and higher containerboard and corrugated prices as price increases are implemented. He also said the company expects one more day of mill operation, lower production impact from packaging maintenance outages and better operating performance across its containerboard mill system.
In paper, PCA expects lower volume and higher prices due to maintenance at International Falls and continued price increase implementation. Freight costs are expected to remain around the elevated levels seen in May and June, while recycled fiber prices are continuing to rise. The company also expects higher chemical and purchased electricity prices, with wood fiber and natural gas relatively flat.
PCA guided for third-quarter earnings of $2.91 per share, excluding special items.
About Packaging Corporation of America (NYSE:PKG)Packaging Corporation of America NYSE: PKG is a leading North American manufacturer of containerboard and corrugated packaging products. The company produces a range of paper-based packaging solutions including linerboard, corrugating medium, corrugated shipping containers, retail-ready packaging and point-of-purchase displays. In addition to core packaging products, Packaging Corporation of America offers packaging design, testing and supply-chain services intended to optimize protection, cost and sustainability for customers.
Headquartered in Lake Forest, Illinois, the company operates an integrated network of mills and corrugated manufacturing facilities across the United States and serves customers throughout North America in industries such as e-commerce, grocery and food & beverage, consumer packaged goods and industrial markets.
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Key Takeaways Packaging Corp posted a Q2 earnings beat as record corrugated shipments drove higher sales and volumes.PKG benefited from the Greif acquisition, while unfavorable price mix and higher costs offset some gains.PKG expects Q3 earnings of $2.91 per share on strong packaging demand and higher corrugated volumes. Packaging Corporation of America (PKG - Free Report) reported second-quarter 2026 adjusted earnings of $2.35 per share, down 5.2% year over year but beating the Zacks Consensus Estimate of $2.31. The bottom line also came above the company’s guidance of $2.33, driven by higher production and sales volumes, including contributions from the acquired Greif Inc. (GEF) business. This was partially offset by lower price and mix in the packaging segment, and higher operating, freight and labor costs.
Including special items related to facility closures, the Wallula mill restructuring and acquisition and integration costs, earnings in the quarter were $2.15 per share compared with the prior-year quarter’s $2.67.
Packaging Corp’s Gross Profit Rises Y/Y in Q2Sales increased 14.7% year over year to $2.49 billion and surpassed the consensus estimate of $2.40 billion by 3.6%. Total corrugated products shipments reached an all-time quarterly record, rising 24.3% both per day and in total from the prior-year quarter.
Gross profit increased 6.1% year over year to $512.5 million. However, the gross margin contracted to 20.6% from 22.2% as the cost of sales rose 17.1% to $1.98 billion. Selling, general and administrative expenses increased 17% to $179 million.
Adjusted operating income improved 1.4% year over year to $315 million. Adjusted EBITDA advanced 7.7% to $486 million, reflecting higher production and sales volumes in packaging and stronger paper segment results.
PKG’s Q2 Segmental PerformancesPackaging: Sales in this segment increased 15.2% year over year to $2.31 billion, aided by higher production and sales volume, including contributions from the acquired Greif business. The figure beat our estimate of $2.14 billion. These gains were partly offset by unfavorable price and mix, along with higher labor, freight and operating costs.
Shipments per day at legacy corrugated products plants increased 4.1%. Containerboard production was 1,415,000 tons, while containerboard inventory increased 40,000 tons from the year-ago quarter due to the acquisition.
Adjusted operating profit was $328 million compared with $322 million in the prior-year quarter. Our model projected the segment’s adjusted operating income to be $313 million.
Paper: The segment’s revenues were $157 million in the April-June quarter, up 7.9% year over year. Our model projected the segment’s adjusted operating income to be $154 million. Sales volume increased 6.3% from the second quarter of 2025.
The segment reported an operating profit of $34.3 million compared with the year-ago quarter’s $25.8 million. The improvement was supported by higher sales volume and favorable price and mix. Our projection for the segment’s adjusted operating income was $32 million.
Packaging Corp's Cash Position DeclinesPKG ended the quarter with $666.8 million in cash, cash equivalents and marketable debt securities, down from $955.9 million a year earlier. Capital spending increased to $205.9 million from $169.7 million.
For the first six months of 2026, capital expenditure totaled $370.6 million compared with $317.8 million in the prior-year period.
PKG Q3 OutlookThe company expects third-quarter 2026 adjusted earnings of $2.91 per share. The outlook assumes continued strong packaging demand, another sequential increase in corrugated products volume, and benefits from previously announced containerboard and corrugated product price increases.
PKG expects better operating performance across its containerboard mill system, although scheduled maintenance expenses will shift toward the paper segment. Freight costs and recycled fiber prices are expected to remain elevated, while higher mill production should increase chemical and electricity usage. PKG also anticipates lower paper volume but improved pricing and mix.
Packaging Corp Stock’s Price PerformanceThe company’s shares have gained 13.5% in the past year against the industry’s decline of 5.6%.
Image Source: Zacks Investment Research
PKG’s Zacks RankPackaging Corp currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Packaging Stocks Awaiting ResultsBall Corporation (BALL - Free Report) is scheduled to release second-quarter 2026 results on Aug. 4. The Zacks Consensus Estimate for BALL’s second-quarter 2026 earnings is pegged at 99 cents per share, suggesting year-over-year growth of 10%.
The Zacks Consensus Estimate for Ball Corp’s top line is pegged at $3.67 billion, indicating growth of 9.8% from the prior-year reported figure. Ball Corp has a trailing four-quarter average surprise of 3.7%.
Silgan Holdings Inc. (SLGN - Free Report) is scheduled to release second-quarter 2026 results on July 29. The Zacks Consensus Estimate for SLGN’s second-quarter 2026 earnings is pegged at 96 cents per share, implying a year-over-year dip of 4.9%.
The Zacks Consensus Estimate for Silgan Holdings’ top line is pegged at $1.62 billion, suggesting an increase of 5.1% from the prior-year reported figure. Silgan Holdings has a trailing four-quarter average surprise of 1.8%.
AptarGroup, Inc. (ATR - Free Report) is scheduled to release second-quarter 2026 results on July 30. The Zacks Consensus Estimate for AptarGroup’s second-quarter 2026 earnings is pegged at $1.34 per share, indicating a year-over-year dip of 19.3%.
The Zacks Consensus Estimate for the company’s top line is pegged at $1 billion, implying growth of 3.8% from the prior-year reported figure. ATR has a trailing four-quarter average surprise of 3.1%.
For the quarter ended June 2026, Packaging Corp. (PKG - Free Report) reported revenue of $2.49 billion, up 14.7% over the same period last year. EPS came in at $2.35, compared to $2.48 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $2.4 billion, representing a surprise of +3.57%. The company delivered an EPS surprise of +1.73%, with the consensus EPS estimate being $2.31.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Packaging Corp. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Segment Sales- Packaging: $2.31 billion compared to the $2.21 billion average estimate based on three analysts. The reported number represents a change of +15.2% year over year.Segment Sales- Corporate and Other: $21.3 million versus $21.64 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +8.7% change.Segment Sales- Paper: $157.3 million versus the three-analyst average estimate of $160.04 million. The reported number represents a year-over-year change of +7.9%.Segment operating income (loss) excluding special items- Packaging: $327.8 million compared to the $317.11 million average estimate based on two analysts.Segment operating income (loss) excluding special items- Corporate and Other: $-47.2 million versus the two-analyst average estimate of $-39.57 million.Segment operating income (loss) excluding special items- Paper: $34.3 million compared to the $32.53 million average estimate based on two analysts.View all Key Company Metrics for Packaging Corp. here>>>
Shares of Packaging Corp. have returned -2% over the past month versus the Zacks S&P 500 composite's +0.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Packaging Corp. (PKG - Free Report) came out with quarterly earnings of $2.35 per share, beating the Zacks Consensus Estimate of $2.31 per share. This compares to earnings of $2.48 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +1.73%. A quarter ago, it was expected that this maker of containerboard and corrugated packaging products would post earnings of $2.17 per share when it actually produced earnings of $2.4, delivering a surprise of +10.6%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Packaging Corp., which belongs to the Zacks Containers - Paper and Packaging industry, posted revenues of $2.49 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.57%. This compares to year-ago revenues of $2.17 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Packaging Corp. shares have added about 10.7% since the beginning of the year versus the S&P 500's gain of 9.7%.
What's Next for Packaging Corp.?While Packaging Corp. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Packaging Corp. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.97 on $2.54 billion in revenues for the coming quarter and $10.46 on $9.98 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Containers - Paper and Packaging is currently in the bottom 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Karat Packing (KRT - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026.
This company is expected to post quarterly earnings of $0.51 per share in its upcoming report, which represents a year-over-year change of -10.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Karat Packing's revenues are expected to be $135 million, up 8.9% from the year-ago quarter.
LAKE FOREST, Ill.--(BUSINESS WIRE)--Packaging Corporation of America (NYSE: PKG) today reported second quarter 2026 net income of $192 million, or $2.15 per share, and net income of $210 million, or $2.35 per share, excluding special items. Second quarter net sales were $2.5 billion in 2026 and $2.2 billion in 2025. Diluted earnings per share attributable to Packaging Corporation of America shareholders Three Months Ended June 30, 2026 2025 Change .
California Public Employees Retirement System decreased its holdings in Packaging Corporation of America (NYSE:PKG – Free Report) by 2.4% in the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 153,476 shares of the industrial products company’s stock after selling 3,830 shares during the quarter. California Public Employees Retirement System owned 0.17% of Packaging Corporation of America worth $32,571,000 at the end of the most recent reporting period.
A number of other institutional investors have also recently made changes to their positions in PKG. Vanguard Group Inc. lifted its holdings in Packaging Corporation of America by 0.5% during the 4th quarter. Vanguard Group Inc. now owns 11,279,442 shares of the industrial products company’s stock worth $2,326,159,000 after buying an additional 51,790 shares in the last quarter. State Street Corp increased its position in shares of Packaging Corporation of America by 1.3% during the fourth quarter. State Street Corp now owns 4,185,761 shares of the industrial products company’s stock worth $868,349,000 after acquiring an additional 54,884 shares during the period. Charles Schwab Investment Management Inc. increased its position in shares of Packaging Corporation of America by 2.5% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,478,505 shares of the industrial products company’s stock worth $717,372,000 after acquiring an additional 83,978 shares during the period. JPMorgan Chase & Co. raised its stake in shares of Packaging Corporation of America by 7.5% in the fourth quarter. JPMorgan Chase & Co. now owns 3,316,670 shares of the industrial products company’s stock valued at $683,997,000 after acquiring an additional 231,474 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD raised its stake in shares of Packaging Corporation of America by 2.7% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,816,736 shares of the industrial products company’s stock valued at $580,897,000 after acquiring an additional 73,047 shares in the last quarter. Institutional investors and hedge funds own 89.78% of the company’s stock.
Packaging Corporation of America Trading Down 0.1% PKG opened at $228.16 on Wednesday. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.88 and a current ratio of 3.07. Packaging Corporation of America has a one year low of $189.03 and a one year high of $249.51. The company has a market cap of $20.33 billion, a P/E ratio of 27.76, a PEG ratio of 2.13 and a beta of 0.80. The business’s 50-day simple moving average is $226.14 and its 200-day simple moving average is $222.17.
Packaging Corporation of America (NYSE:PKG – Get Free Report) last posted its earnings results on Wednesday, April 22nd. The industrial products company reported $2.40 earnings per share for the quarter, topping the consensus estimate of $2.17 by $0.23. The firm had revenue of $2.37 billion during the quarter, compared to analysts’ expectations of $2.45 billion. Packaging Corporation of America had a return on equity of 19.27% and a net margin of 8.04%.The firm’s revenue was up 10.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.31 earnings per share. As a group, equities research analysts expect that Packaging Corporation of America will post 10.46 EPS for the current fiscal year.
Packaging Corporation of America Increases Dividend The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Monday, June 15th were given a dividend of $1.50 per share. The ex-dividend date was Monday, June 15th. This represents a $6.00 annualized dividend and a dividend yield of 2.6%. This is a boost from Packaging Corporation of America’s previous quarterly dividend of $1.25. Packaging Corporation of America’s payout ratio is presently 72.99%.
Insider Buying and Selling at Packaging Corporation of America In related news, CEO Mark W. Kowlzan sold 9,266 shares of the business’s stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $217.08, for a total value of $2,011,463.28. Following the completion of the sale, the chief executive officer directly owned 473,610 shares of the company’s stock, valued at $102,811,258.80. The trade was a 1.92% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Corporate insiders own 1.60% of the company’s stock.
Analyst Ratings Changes Several research analysts recently commented on the company. Deutsche Bank Aktiengesellschaft raised Packaging Corporation of America from a “hold” rating to a “buy” rating and boosted their target price for the stock from $225.00 to $256.00 in a research note on Monday, May 4th. Truist Financial lifted their price objective on Packaging Corporation of America from $258.00 to $270.00 and gave the company a “buy” rating in a research note on Wednesday, July 15th. Bank of America boosted their price objective on Packaging Corporation of America from $242.00 to $263.00 and gave the stock a “buy” rating in a research report on Tuesday, July 14th. Citigroup upped their target price on shares of Packaging Corporation of America from $229.00 to $241.00 and gave the stock a “neutral” rating in a research note on Thursday, July 9th. Finally, Wells Fargo & Company reaffirmed an “equal weight” rating and issued a $246.00 target price (up from $245.00) on shares of Packaging Corporation of America in a report on Thursday, July 9th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $256.14.
Get Our Latest Stock Analysis on PKG
Packaging Corporation of America Profile (Free Report)
Packaging Corporation of America (NYSE: PKG) is a leading North American manufacturer of containerboard and corrugated packaging products. The company produces a range of paper-based packaging solutions including linerboard, corrugating medium, corrugated shipping containers, retail-ready packaging and point-of-purchase displays. In addition to core packaging products, Packaging Corporation of America offers packaging design, testing and supply-chain services intended to optimize protection, cost and sustainability for customers.
Headquartered in Lake Forest, Illinois, the company operates an integrated network of mills and corrugated manufacturing facilities across the United States and serves customers throughout North America in industries such as e-commerce, grocery and food & beverage, consumer packaged goods and industrial markets.
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Wall Street analysts expect Packaging Corp. (PKG - Free Report) to post quarterly earnings of $2.31 per share in its upcoming report, which indicates a year-over-year decline of 6.9%. Revenues are expected to be $2.4 billion, up 10.7% from the year-ago quarter.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 4.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Given this perspective, it's time to examine the average forecasts of specific Packaging Corp. metrics that are routinely monitored and predicted by Wall Street analysts.
Based on the collective assessment of analysts, 'Segment Sales- Packaging' should arrive at $2.21 billion. The estimate suggests a change of +10.2% year over year.
The consensus estimate for 'Segment Sales- Corporate and Other' stands at $21.64 million. The estimate indicates a year-over-year change of +10.4%.
The collective assessment of analysts points to an estimated 'Segment Sales- Paper' of $160.04 million. The estimate suggests a change of +9.8% year over year.
Analysts forecast 'Segment operating income (loss) excluding special items- Packaging' to reach $317.11 million. The estimate is in contrast to the year-ago figure of $321.70 million.
Analysts predict that the 'Segment operating income (loss) excluding special items- Paper' will reach $32.53 million. Compared to the current estimate, the company reported $25.80 million in the same quarter of the previous year.
View all Key Company Metrics for Packaging Corp. here>>>
Shares of Packaging Corp. have demonstrated returns of -2.4% over the past month compared to the Zacks S&P 500 composite's -0.6% change. With a Zacks Rank #3 (Hold), PKG is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Key Takeaways Packaging Corp is expected to report Q2 revenues of $2.40B, up 10.7% y/y, with EPS projected to fall 6.8%.PKG expects the Greif containerboard business to become accretive after a first-quarter earnings drag.PKG Packaging volume and pricing are expected to improve, while Paper revenues and operating income may rise. Packaging Corporation of America (PKG - Free Report) is set to release second-quarter 2026 results on July 22, after the closing bell.
The Zacks Consensus Estimate for PKG’s second-quarter revenues is pegged at $2.40 billion, indicating 10.7% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $2.31 per share. The Zacks Consensus Estimate for PKG’s second-quarter earnings has moved south in the past 60 days. The estimate indicates a year-over-year dip of 6.8%.
Image Source: Zacks Investment Research
PKG’s Earnings Surprise HistoryPackaging Corp’s earnings beat the Zacks Consensus Estimates in two of the trailing four quarters and missed in the other two, the average surprise being a 1.3%.
Image Source: Zacks Investment Research
What the Zacks Model Unveils for Packaging CorpOur model does not predict an earnings beat for PKG this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you can see below.
You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Earnings ESP: Packaging Corp has an Earnings ESP of -0.18%.
Zacks Rank: PKG currently carries a Zacks Rank of 3.
Factors Likely to Have Shaped PKG’s Q2 PerformancePackaging Corp closed the acquisition of the containerboard business of Greif, Inc (GEF - Free Report) in September 2025. The Greif containerboard business includes two containerboard mills with approximately 800,000 tons of production capacity, and eight sheet feeder and corrugated plants located across the United States. While Greif was a 6-cent-per-share drag in the first quarter of 2026 due to storm disruption and higher freight and recycled fiber costs, management expects the acquired operations to be accretive to earnings in the second quarter. This is likely to have aided the Packaging segment in the to-be-reported quarter.
Our model predicts the Packaging segment’s volume to rise 3.6% year over year. The price and mix impacts for the Packaging segment are expected to have been favorable at 3.3% for the quarter, per our model.
The estimate for the segment’s quarterly revenues is pegged at $2.14 billion, suggesting growth of 6.9% from the year-ago quarter’s reported number. Our model estimates the segment’s operating income to be $260 million, indicating a dip of 24.9% from the prior-year reported figure.
In the Paper segment, prices and mix are expected to have increased 1.8% year over year. We expect volume to increase 3.6% year over year.
The estimate for the Paper segment’s revenues is pegged at $154 million for the June-end quarter, suggesting growth of 6.6% from the year-ago reported figure. The estimate for the segment’s operating income is $32 million, indicating 24.2% growth from the prior-year quarter’s actual.
Packaging Stock's Price PerformanceOver the past year, PKG shares have gained 18.6% against the industry’s 4.1% decrease.
Image Source: Zacks Investment Research
Stocks That Warrant a LookHere are some companies with the right combination of elements to post an earnings beat in their upcoming releases.
Hubbell Incorporated (HUBB - Free Report) , slated to release second-quarter 2026 results on July 28, has an Earnings ESP of +0.62% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hubbell’s second-quarter 2026 earnings is pegged at $5.32 per share, suggesting a year-over-year rise of 7.9%. HUBB has a trailing four-quarter average surprise of 4.7%.
Deere & Company (DE - Free Report) , slated to release third-quarter fiscal 2026 results on Aug. 20, has an Earnings ESP of +6.92% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Deere’s third-quarter fiscal 2026 earnings is pegged at $4.82 per share, suggesting a year-over-year rise of 1.5%. DE has a trailing four-quarter average surprise of 10.2%.
Wall Street expects a year-over-year decline in earnings on higher revenues when Packaging Corp. (PKG - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 22, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis maker of containerboard and corrugated packaging products is expected to post quarterly earnings of $2.31 per share in its upcoming report, which represents a year-over-year change of -6.9%.
Revenues are expected to be $2.38 billion, up 9.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 4.14% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Packaging Corp.?For Packaging Corp., the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.18%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Packaging Corp. will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Packaging Corp. would post earnings of $2.17 per share when it actually produced earnings of $2.40, delivering a surprise of +10.60%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Packaging Corp. doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAnother stock from the Zacks Containers - Paper and Packaging industry, Sonoco (SON - Free Report) , is soon expected to post earnings of $1.48 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +8%. Revenues for the quarter are expected to be $1.89 billion, down 0.9% from the year-ago quarter.
The consensus EPS estimate for Sonoco has been revised 0.3% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -0.97%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Sonoco will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
LAKE FOREST, Ill.--(BUSINESS WIRE)--Packaging Corporation of America (NYSE: PKG) will hold a conference call on Thursday, July 23, 2026, at 9:00 a.m. Eastern Time to discuss second quarter 2026 results. The conference call leader will be Mark Kowlzan. Second quarter earnings results will be released after the market closes on Wednesday, July 22, 2026.
To access the conference call, you may pre-register for the conference by navigating to https://dpregister.com/sreg/10205355/102fb95d496. Once you have registered, you will receive your dial-in number. When dialing in the day of the call, please ask to join the Packaging Corporation of America earnings call.
If you prefer not to pre-register, you may dial in the day of the call using one of the following toll-free numbers: 833-816-1102 (U.S.), 866-605-3852 (Canada) or 412-317-0684 (International) by 8:45 a.m. (Eastern Time). Please ask to join the Packaging Corporation of America earnings call.
A replay of the call will also be available from July 23, 2026, until August 6, 2026. To access the recording, please use one of the following toll-free numbers: 855-669-9658 (U.S. and Canada) or 412-317-0088 (International). The replay Access Code is: 9358134.
This call will also be webcast and accessible at PCA’s website at www.packagingcorp.com. Please go to the Investor Relations tab to access the call.
PCA is the third largest producer of containerboard products and a leading producer of uncoated freesheet paper in North America. PCA operates ten paper mills and 90 corrugated products plants and related facilities.
LAKE FOREST, Ill.--(BUSINESS WIRE)--Packaging Corporation of America (NYSE: PKG) today reported first quarter 2026 net income of $171 million, or $1.91 per share, and net income of $215 million, or $2.40 per share, excluding special items. First quarter net sales were $2.4 billion in 2026 and $2.1 billion in 2025. Diluted earnings per share attributable to Packaging Corporation of America shareholders Three Months Ended March 31, 2026 2025 Change .
While the top- and bottom-line numbers for Packaging Corp. (PKG) give a sense of how the business performed in the quarter ended March 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Packaging Corp. (PKG) came out with quarterly earnings of $2.4 per share, beating the Zacks Consensus Estimate of $2.17 per share. This compares to earnings of $2.31 per share a year ago.
Packaging Corporation of America delivered strong Q1 results, with EPS of $2.40 beating guidance and revenue up 11% to $2.4 billion. PKG continues to gain market share but faces margin pressure from elevated input and freight costs and risks from sustained energy inflation. Q2 guidance of $2.33 EPS is below consensus, driven by planned maintenance outages and higher corporate expenses, but underlying demand remains robust.
Cwm LLC reduced its stake in shares of Packaging Corporation of America (NYSE: PKG) by 35.4% in the undefined quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 19,847 shares of the industrial products company's stock after selling 10,873 shares during the
Key Takeaways Packaging Corp beats Q1 EPS estimates as pricing, mix, and lower fiber costs lift results.PKG Packaging segment drives growth with 11.1% sales rise and higher operating profit year over year.Margins shrink as costs climb and special charges tied to closures and acquisitions weigh on profits. Packaging Corporation of America (PKG - Free Report) posted adjusted earnings of $2.40 per share in the first quarter of 2026, up 3.9% from $2.31 a year ago. The result beat the Zacks Consensus Estimate of $2.17 by 10.6%.
Net sales rose 10.6% year over year to $2.37 billion but missed the consensus mark of $2.41 billion by 1.9%. Favorable pricing and mix, along with lower fiber costs, supported adjusted results, though special items weighed on reported profitability. Lower-than-expected earnings from the recently acquired Greif Inc.(GEF - Free Report) business also impacted sales. The Grief operations generated a loss of 6 cents per share during the quarter.
PKG’s Segmental PerformancePKG’s Packaging segment remained the primary growth engine. Segment sales increased 11.1% year over year to $2.19 billion in the quarter, reflecting stronger top-line momentum relative to the consolidated growth rate. Our model predicted the segment’s sales to be $2.21 billion for the quarter. Adjusted operating profit for the segment was $316.5 million compared with $284 million in the prior-year quarter.
The Paper segment delivered more modest expansion, with sales of $159.9 million compared with $154.2 million a year ago. We expected sales of $151 million for the Paper segment. Adjusted operating profit for the segment was $33 million compared with $36 million in the prior year quarter.
Packaging Corp. Margin Pressures Hit Reported ProfitDespite the double-digit sales increase, profitability metrics showed mixed movement on a reported basis. Gross profit was $453 million compared with $455 million in the prior-year quarter, while cost of sales climbed to $1.91 billion year-over-year from $1.69 billion. The gross margin came in at 19.1% in the first quarter of 2026 compared with 21.2% in the prior year quarter.
Below the gross line, selling, general and administrative expenses rose to $180.3 million from $161.4 million, while other expenses, net, increased to $21.3 million from $13.0 million.
PKG’s Special Items Lift Adjusted ComparisonsA key swing factor between reported and adjusted performance was special items recorded during the quarter. Special items totaled $44.3 million after tax.
The largest item was $53.3 million of charges tied to the announced discontinuation of the No. 2 machine and kraft pulping facilities at the Wallula, WA, containerboard mill. PKG recorded $3.4 million of acquisition and integration-related costs and $2.9 million of facilities closure and other costs, which together added to the gap between reported and adjusted earnings.
Packaging Corp Cash Position Declines as Spending RisesCash, cash equivalents and marketable debt securities ended the quarter at $615.5 million, down from $914.4 million at the end of the prior-year quarter.
Capital spending rose to $164.7 million from $148.1 million in the year-ago period. Meanwhile, diluted weighted average shares outstanding were 89.1 million versus 89.6 million a year earlier, providing a small offset to per-share comparisons.
PKG’s OutlookPKG expects strong demand in the Packaging segment in the second quarter, with higher corrugated volumes supported by an extra shipping day and seasonal improvement. Prices for containerboard and corrugated products should rise due to earlier announced increases and a better product mix. Production at packaging mills will be slightly higher, though maintenance-related costs will increase. In the Paper segment, the company expects volumes to stay flat, but prices to increase.
The company expects second-quarter adjusted earnings to be around $2.33 per share.
Packaging Corp. Stock’s Price PerformancePackaging Corp’s shares have gained 11.5% over the past year against the industry’s decline of 11.1%. In comparison, the broader Zacks Industrial Products sector has increased 38% and the S&P 500 grew 35.9%.
Image Source: Zacks Investment Research
PKG’s Zacks RankPackaging Corp. currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Packaging Stocks Awaiting ResultsAptarGroup, Inc. (ATR - Free Report) is scheduled to release first-quarter 2026 results on April 30. The Zacks Consensus Estimate for ATR’s first-quarter 2026 earnings is pegged at $1.15 per share, indicating a year-over-year dip of 4.2%.
The consensus estimate for AptarGroup’s top line is pegged at $963 million, indicating an 8.5% increase from the prior year’s actual. ATR has a trailing four-quarter average earnings surprise of 3.1%.
Silgan Holdings (SLGN - Free Report) is scheduled to report first-quarter 2026 results on April 29. The Zacks Consensus Estimate for SLGN’s first-quarter 2026 earnings is pegged at 74 cents per share, indicating a year-over-year dip of 9.8%.
The consensus estimate for Silgan’s top line is pegged at $1.49 billion, indicating an increase of 1.8% from the prior year’s actual. SLGN has a trailing four-quarter average earnings surprise of 1.8%.
Net Income: $171 million or $1.91 per share; excluding special items, $215 million or $2.40 per share.Net Sales: $2.4 billion in Q1 2026, up from $2.1 billion
Shares of Packaging Corporation of America (NYSE: PKG - Get Free Report) rose 6.4% on Thursday following a better than expected earnings announcement. The stock traded as high as $218.78 and last traded at $218.3440. Approximately 368,158 shares changed hands during trading, a decline of 64% from the average daily volume of 1,023,421 shares. The stock
Packaging Corporation of America (NYSE: PKG) reported first-quarter 2026 net income of $171 million, or $1.91 per share, with results affected by special items tied primarily to mill restructuring and acquisition integration. Excluding special items, the company posted net income of $215 million, or $2.40 per share, up from $208 million, or $2.31 per share, in
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 $6.00 per share from $5.00 per share, a 20% increase. The first quarterly dividend of $1.50 per share will be paid to shareholders of record as of June 15, 2026 with a payment date of July 15, 2026. Future declaration of quarterly dividends and the establishment of future record and payment dates are s.
Key Takeaways PAG will pay a $1.42 dividend on June 6 and has raised payouts 21 times in five years.PKG declared a $1.50 dividend for July 15, with a current dividend yield of 2.29%.MAR and TKR announced dividends on May 8 as inflation and tariffs keep markets volatile. Stocks have rallied lately, but the economy is facing several challenges that are impacting its health and weighing on investors’ sentiment. Uncertainty over an end to the Iran conflict, sky-high inflation and the impact of tariffs are weakening the economy.
Given the uncertainty, cautious investors looking for steady income and ways to protect their capital may consider holding or investing in dividend-paying stocks.
Such stocks provide steady earnings through regular dividend payouts and can help mitigate the effects of market volatility. Four such stocks are: Penske Automotive Group, Inc. (PAG - Free Report) , Packaging Corporation of America (PKG - Free Report) , Marriott International, Inc. (MAR - Free Report) and The Timken Company (TKR - Free Report) . Each of these stocks currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Uncertainty ContinuesStocks rallied on Thursday after a key meeting between President Donald Trump and Chinese Premier Xi Jinping. The two world leaders discussed several issues, including ways to end the Iran war and allowing a smooth passage to vessels sailing through the Strait of Hormuz.
However, no concrete solution was found. A ceasefire has been in place for more than two weeks now, but neither the United States nor Iran has agreed to a second round of peace talks.
Energy costs have climbed rapidly since the Iran conflict began. Gasoline prices jumped 21.2% in March before increasing another 5.4% in April. Meanwhile, food prices rose 0.5% in April, with grocery prices advancing 0.7% during the month — the sharpest increase since August 2022.
Inflation rose for the second straight month in April. The consumer price index (CPI) rose 0.6% sequentially in April after rising 0.9% in March, the Bureau of Labor Statistics reported earlier this week. On a yearly basis, CPI climbed 3.8% in April, marking its highest level since May 2023.
Core CPI, which strips out volatile food and energy costs, advanced 0.4% month over month and was up 2.8% compared with a year earlier. The rise in inflation during April was largely driven by a 3.8% surge in energy prices, which contributed nearly 40% of the overall increase.
Also, higher tariffs are hurting consumer spending. These uncertainties could keep markets volatile for a longer period.
4 Stocks That Recently Announced Dividend HikesPenske Automotive GroupPenske Automotive Group, Inc. engages in the operation of automotive and commercial truck dealerships in the United States, the United Kingdom, Canada, Germany, Italy and Japan. PAG also distributes and retails commercial vehicles, diesel engines, gas engines, power systems and related parts and services, principally in Australia and New Zealand.
On May 13, Penske Automotive Group announced that its shareholders would receive a dividend of $1.42 a share on June 6. PAG has a dividend yield of 3.36%. Over the past five years, Penske Automotive Group has increased its dividend 21 times, and its payout ratio presently sits at 43% of earnings. Check Penske Automotive Group’s dividend history here.
Packaging Corporation of AmericaPackaging Corporation of America is the third-largest producer of containerboard products and a leading producer of uncoated freesheet paper in North America. PKG operates 10 mills and 91 corrugated products manufacturing plants.
On May 12, Packaging Corporation of America declared that its shareholders would receive a dividend of $1.50 a share on July 15. PKG has a dividend yield of 2.29%. Over the past five years, Packaging Corporation of America has increased its dividend twice, and its payout ratio presently sits at 50% of earnings. Check Packaging Corporation of America’s dividend history here.
Marriott InternationalMarriott International, Inc. is a leading worldwide hospitality company focused on lodging management and franchising after the spin-off of its timeshare business into a publicly traded company in November 2011.
On May 8, Marriott International announced that its shareholders would receive a dividend of $0.73 a share on June 30. MAR has a dividend yield of 0.77%. Over the past five years, Marriott International has increased its dividend six times, and its payout ratio presently sits at 26% of earnings. Check Marriott International’s dividend history here.
The Timken Company The Timken Company is a global manufacturer of engineered bearings and industrial motion products and related services. TKR serves a wide variety of end markets, including aerospace, automotive, construction, consumer, defense, energy, industrial equipment, health, heavy industry, machine tool, positioning control, power generation and rail markets.
On May 8, The Timken Company declared that its shareholders would receive a dividend of $0.36 a share on May 29. TKR has a dividend yield of 1.21%. Over the past five years, The Timken Company has increased its dividend six times, and its payout ratio presently sits at 25% of earnings. Check The Timken Company’s dividend history here.
Investors interested in stocks from the Containers - Paper and Packaging sector have probably already heard of Karat Packing (KRT) and Packaging Corp. (PKG). But which of these two companies is the best option for those looking for undervalued stocks?
LAKE FOREST, Ill.--(BUSINESS WIRE)--Packaging Corporation of America's (NYSE: PKG) Chief Executive Officer, Mark Kowlzan, will speak at Wells Fargo's 16th Annual Industrials and Materials Conference being held at Loews Chicago in Chicago, IL on Wednesday, June 10, 2026 at 8:45am CST. After Mr. Kowlzan's Fireside Chat, he and Executive Vice President and CFO, Kent Pflederer will participate in a Q&A session. Immediately following, they will be hosting a series of 1 x 1 meetings. For those in.
Packaging Corporation of America's (NYSE: PKG) Chief Executive Officer, Mark Kowlzan, will speak at Wells Fargo's 16th Annual Industrials and Materials Confere
Wednesday is garbage day where I live, and because of how recycling works here, we have four separate bins. One for solid waste, one for "containers" - bottles and cans, one for compost (grass clippings basically), and one for paper. These last two are the largest, but even so, somehow the one for paper is never big enough. We get everything delivered now, and everything delivered comes in a box. Sure enough today, no matter how much I folded and stuffed, a lot of the cardboard ended up next to the paper bin when there was no more room in it... which got me thinking.
Packaging Corp of America (PKG) is an old-school, brick-and-mortar industrial business. They make corrugated boxes, containerboard, and shipping materials. Perhaps it sounds unsexy, like a relic of the past (the company's origins are more than a century old), but consider how the world actually works right now.
We live in a new age dominated by digital commerce. Every single click on a mobile app, every online shopping binge, and every supply chain shipment fundamentally relies on one thing: a box. Tech may create the order, but old industrials package it up. It's the eyesore sitting on my curb right now.
The stock is up a relatively modest 9% in 2026, but management just boosted the annual dividend by 20% to $6.00 per share, and the street consensus is the company earns 12.30 in adjusted EPS next year - roughly 18% growth YoY. With the stock trading around $225, you get a solid yield. But in a choppy, sideways macro environment, why just sit there and collect a standard payout? You can supercharge this old-economy horse using a classic, straightforward (dare I say "box stock") buy-write strategy.
Packaging Corp of America (PKG), YTD
We actually have a "double distribution" fund. Here's an example of how you can manufacture a "double dividend."
Here is the play:
The Stock: Buy shares of Packaging Corp of America (PKG) at the current market price of around $225.The Option: Simultaneously sell (write) the July $250 Call against your shares.The Premium: Target a sale price of $2.25 per contract.Skill level: BeginnerBy collecting that $2.25 option premium, you are pocketing an immediate cash yield equal to roughly 1% of the stock price in roughly 6 weeks.
Think about the math here. You capture the underlying stock, you position yourself for the newly increased $1.50 quarterly dividend payout, and you layer on an additional $2.25 in pure options income. If the stock trades flat or pushes moderately higher, that premium is yours to keep, effectively letting you double up on the income this name generates. Buy writing is also a great introductory strategy for anyone looking to make their first options trade.
If the market catches fire and PKG blasts past $250 by July expiration? You get called away. But guess what? You just locked in an 11% capital gain from equity appreciation, alongside your premium and dividend, in which case we can recycle another options strategy to write our way back into the name.
