economy
A classic strategy that could yield big dividends
Packaging Corp of America (PKG) is an old-school, brick-and-mortar industrial business.
TL;DR
- Packaging Corp of America (PKG) manufactures corrugated boxes and containerboard, essential for e-commerce.
- The company's stock has risen 9% in 2026, and its annual dividend was increased by 20% to $6.00 per share.
- A suggested investment strategy is to buy PKG shares and simultaneously sell a July $250 Call option, targeting a premium of $2.25.
- This strategy aims to generate immediate income from the option premium, in addition to stock appreciation and dividends.
- If the stock price exceeds $250 by July, the shares would be sold, locking in capital gains, premium, and dividend.