Deutsche Bank: Packaging America Returning Cash to Shareholders

In a research report published earlier today by Deutsche Bank, Packaging Corporation of America (NYSE: PKG) is returning cash to shareholders after it announced an increase in its annual dividend.

Deutsche Bank commented on the cash-back: “This move isn't a huge surprise. PKG noted on its recent 4Q earnings call that it was reviewing the dividend policy. At $1/share, this implies a dividend yield of 3.4% at current price levels. The dividend increase comes only 2 months after PKG increased its share buyback program by $150MM.”

Deutsche Bank maintains its Buy rating and $34 PT on Packaging America, which is currently trading at $28.85.