A classic strategy that could yield big dividends Packaging Corp of America (PKG), a company that produces essential shipping materials like corrugated boxes, is experiencing growth driven by e-commerce. The stock has seen modest gains, and management recently increased the annual dividend by 20%. An analysis suggests a ‘buy-write’ strategy involving selling call options against PKG shares to generate additional income.

• 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.