PKG Price Forecast Based on Dividend Discount Model

A technique commonly used by dividend investors to value dividend-issuing stocks is the Dividend Discount Model (DDM), which seeks to determine a fair share price based on the dividend provided by the company relative to a number of other company-specific factors. Regarding Packaging Corp Of America, the DDM model, as implemented by StockNews, implies a negative return of 8.4% relative to its current price. Digging deeper, the aspects of Packaging Corp Of America's dividend discount model that we found most interesting were:

• In comparison to other US listed dividend yielding stocks in the Consumer Cyclical sector, Packaging Corp Of America's expected return of -8.4% is higher than 83.44% of its fellow sector mates.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, Packaging Corp Of America bears a discount rate, according to our calculations, lower than 83.44% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• A stock's beta generally indicates its volatility relative to the broader equity market; as for PKG, approximately 70.87% of US-listed dividend issuers had a higher beta, and thus may have greater price volatility.

PKG Dividends vs. Peers