Why Packaging Corp. Is Poised to Keep Poppin'

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, containerboard and corrugated packaging products company Packaging Corp. of America (NYSE: PKG  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Packaging Corp. and see what CAPS investors are saying about the stock right now.

Packaging Corp. facts

Headquarters (founded)

Lake Forest, Ill. (1867)

Market Cap

$4.9 billion

Industry

Paper packaging

Trailing-12-Month Revenue

$2.9 billion

Management

CEO Mark Kowlzan (since 2010)

CFO Richard West (since 1999)

Return on Equity (average, past 3 years)

19.7%

Cash/Debt

$268.0 million / $815.5 million

Dividend Yield

3.2%

Competitors

International Paper

Rock-Tenn Company

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 93% of the 198 members who have rated Packaging Corp. believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star redearth329, succinctly summed up the Packaging Corp. bull case for our community:

I'm channeling Peter Lynch on this one: 1) the company has a super boring product and an even more boring name. 2) it's a business I can understand. 3) boring fundamental part of an exciting industry (online retailers).

If you want market-topping returns, you need to put together the best portfolio you can. Of course, despite its strong five-star rating, Packaging Corp.  may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

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