Corrugated packaging specialist Packaging Corp of America (NYSE:PKG) announced yesterday that it was hiking its annual dividend to shareholders by 28%, raising the payout to $1.60 per share, from $1.25 per share.

The board of directors said the first quarterly dividend of $0.40 per share will be paid on July 15 to shareholders of record as of June 14. PCA has increased the dividend three times in the past three years.

Packaging Corp of America CEO Mark W. Kowlzan said: "Today's announcement of a common stock dividend increase reflects the overall operating and financial strength of the company and our continuing commitment to return value to our shareholders."

The new $1.60 per share dividend payment yields 3.2% based on the closing price of Packaging Corp of America's stock on May 15.

PKG Dividend Chart

PKG Dividend data by YCharts
Chart does not reflect new, higher dividend announcement.