The Dynamic Dividend

Packaging Corporation of America Lifts Yield Over 3%

Packaging Corporation of America (PKG) announced a 25% increase to its dividend after today’s closing bell, marking the second consecutive year the company has given its shareholders a significant raise.

The containterboard producer declared a quarterly dividend of $0.25 per share, topping the $0.20 per share it had paid each of the previous four quarters. The move comes one year after PCA — which halved its payout at the beginning of 2009 — began its dividend recovery with a 33% payout hike.

Shares of PKG closed today’s session trading at $29.37, where they now yield 3.40%. The stock hit a new 52-week high today, and is already up more than 16% this year.