Packaging Corporation of America (PKG) Dividends

PKG Price Forecast Based on Dividend Discount Model

The Dividend Discount Model (DDM) is a valuation model that attempts to determine a fair share price for a stock, based on the dividend it provides in comparison to several company-specific metrics indicative of the riskiness of the stock and the financial health of the company. In the case of PKG, the dividend discount model StockNews created for the company implies a positive return of 182.87%. 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, the expected return of 182.87%, based on the stock's current share price and target price based on a dividend discount model, is greater than 95.91% of the DDM-forecasted return of its its sector peers.
• Compared to all dividend issuing stocks in our set, Packaging Corp Of America bears a discount rate, according to our calculations, lower than 95.91% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• Beta, which compares volatilty of an individual stock to that of the S&P 500, is lower for PKG than it is for 92.4% of other equities in the Consumer Cyclical sector that also issue dividends.

PKG Dividends vs. Peers