Packaging up another solid DGI stock

I added another position to my portfolio today, the 28th overall, when I purchased a share of Packaging Corporation of America.

Today’s Purchase: Packaging Corporation of America

I scooped up a share of Packaging Corp. (PKG) for $96.65. Here’s why …

It fit with my portfolio construction

Packaging Corporation of America pays a quarterly dividend of $0.79 in January, April, July and October, which is exactly what I was looking for. You see, I already have 10 companies that pay quarterly divis in February, May, August and November and another 10 that pay quarterly in March, June, September and December. Prior to today’s purchase, though, I only had seven that paid every quarter starting in January. Now, obviously, I have eight (my math game is really, really strong) and I’ll be looking to add another two soon.

Once I get the other two, and have 10 companies I feel good about paying me within each of the three quarterly schedules – which translates to 10 companies paying me each and every month – I’ll look to even out the payments as much as I can.

The dividend is solid

The second reason I like PKG is the dividend. Its $3.16 annualized payment equates to a 3.29% yield. On top of that, the payout ratio is under 50%, meaning the divi is well covered. The company has also shown a commitment to its dividend with five straight years of raises. Over the course of those five years, the payment’s jumped by an average of 14.93% annually.

Not bad, right?

It’s on sale

Finally, I picked up PKG because, well, because it looks like a good deal. It’s right in the middle of its 52-week range ($77.90-$124.70) and has a P/E ratio of about 12. You can do better, I guess, but you can certainly do much, much worse. It’s not a steal by any stretch, but I think I’m getting a pretty good value at under $100/share.

That’s it for now. Check out my portfolio if you haven’t in awhile. Until next time, march on, people!

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