Graphic Packaging Holding Company Announces 10% Dividend Increase

Rhea-AI Summary

Graphic Packaging (NYSE: GPK) announced a 10% increase in its quarterly dividend to $0.11 per share, up from $0.10. The dividend will be paid on April 5, 2025, to stockholders of record as of March 15, 2025.

As the company's Vision 2025 transformation program nears completion, capital spending requirements are expected to decrease significantly. Under Vision 2030, the company plans to focus on strengthening its market position in sustainable consumer packaging through reinvestment and tuck-under M&A, while returning excess capital to stockholders.

Management expressed confidence in the company's business model and indicated plans to supplement growing dividends with opportunistic share repurchases. The company also aims to pursue an investment grade credit rating when beneficial to stockholders.

Positive

• 10% dividend increase from $0.10 to $0.11 per share
• Expected reduction in capital spending requirements
• Planned return of excess capital to shareholders through dividends and share repurchases
• Strategic focus on market position strengthening through M&A

Negative

• None.

ATLANTA, Feb. 4, 2025 /PRNewswire/ -- Graphic Packaging Holding Company (NYSE: GPK) ("Graphic Packaging" or the "Company"), a global leader in sustainable consumer packaging, today announced that its Board of Directors voted to increase the quarterly dividend to $0.11 per share of common stock, a 10% increase from the prior quarterly dividend of $0.10. The increased dividend will be payable on April 5, 2025, to common stockholders of record at the close of business on March 15, 2025.

Michael Doss, the Company's President and CEO said, "As the last major investment of our Vision 2025 transformation program nears completion, the company's capital spending needs decline significantly. Our focus under Vision 2030 turns to strengthening and protecting our market-leading position in sustainable consumer packaging through reinvestment and tuck-under M&A, and returning excess capital to stockholders. We believe that a strong and growing dividend is appropriate capital allocation, and this increase reflects our confidence in the strength of our business model. We expect to supplement a growing dividend with opportunistic share repurchase, and to pursue an investment grade credit rating when doing so provides the greatest benefit to our stockholders."

About Graphic Packaging Holding Company
Graphic Packaging designs and produces consumer packaging made primarily from renewable or recycled materials. An industry leader in innovation, the Company is committed to reducing the environmental footprint of consumer packaging. Graphic Packaging operates a global network of design and manufacturing facilities serving the world's most widely recognized brands in food, beverage, foodservice, household, and other consumer products. Learn more at www.graphicpkg.com.

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SOURCE Graphic Packaging Holding Company

FAQ

What is GPK's new quarterly dividend amount for 2025?

GPK's new quarterly dividend is $0.11 per share, representing a 10% increase from the previous $0.10 per share.

When will GPK's increased dividend be paid?

The increased dividend will be paid on April 5, 2025, to stockholders of record as of March 15, 2025.

What are GPK's capital allocation plans under Vision 2030?

Under Vision 2030, GPK plans to strengthen its market position through reinvestment and tuck-under M&A, while returning excess capital to stockholders through growing dividends and share repurchases.

How will GPK's capital spending change after Vision 2025?

GPK's capital spending needs are expected to decline significantly as the last major investment of their Vision 2025 transformation program nears completion.

What is GPK's strategy for shareholder returns in 2025?

GPK plans to provide shareholder returns through increased dividends and opportunistic share repurchases, while pursuing an investment grade credit rating when beneficial to stockholders.