Amcor Maintains Quarterly Dividend, Analysts Predict 24.22% Price Increase
ByAinvest
Tuesday, Aug 19, 2025 4:24 am ET1min read
AMCR--
Amcor's dividend is attractive for income-focused investors, offering a yield that far exceeds the average for the Consumer Cyclical sector. However, the company's high payout ratio of 91.07% raises concerns about its ability to sustain this dividend in the long term [2]. The recent acquisition of Berry Global has added significant debt and integration costs, straining Amcor's financial health. While the acquisition is expected to generate substantial cost synergies by 2028, the near-term financial strain is evident, with a slight dip in adjusted free cash flow in 2025 [2].
The company's debt-to-equity ratio of 2.24 is high but not uncommon for a capital-intensive industry. Amcor has committed to reducing leverage to 3x earnings by 2026, a target that hinges on the successful realization of $260 million in 2026 synergies. These savings, coupled with projected free cash flow of $1.8–$1.9 billion in 2026, could lower the payout ratio to 64.56%, aligning it with industry norms [2].
Investors must monitor key metrics such as synergy progress, payout ratio trajectory, and debt reduction to assess the sustainability of Amcor's dividend. While the high yield is compelling, especially in a low-interest-rate environment, the risks of delayed synergies, earnings volatility, and elevated debt-to-equity ratio must be considered [2].
References:
[1] https://www.marketbeat.com/instant-alerts/amcor-plc-nyseamcr-to-issue-013-quarterly-dividend-2025-08-15/
[2] https://www.ainvest.com/news/amcor-dividend-dilemma-high-yield-attraction-looming-trap-2508/
Amcor PLC (AMCR) maintains a quarterly dividend of $0.1275 per share, yielding 5.84%. Analysts predict an average price increase of 24.22% over the next year. GuruFocus estimates a potential 33.45% upside based on the GF Value metric. The consensus recommendation is an average rating of 2.3, reflecting an "Outperform" status.
Amcor PLC (AMCR) has announced a quarterly dividend of $0.1275 per share, set to be paid on September 25th to stockholders of record as of September 5th [1]. This dividend represents a yield of 5.84% based on the current stock price. Analysts predict an average price increase of 24.22% over the next year, while GuruFocus estimates a potential 33.45% upside based on the GF Value metric. The consensus recommendation is an average rating of 2.3, reflecting an "Outperform" status [2].Amcor's dividend is attractive for income-focused investors, offering a yield that far exceeds the average for the Consumer Cyclical sector. However, the company's high payout ratio of 91.07% raises concerns about its ability to sustain this dividend in the long term [2]. The recent acquisition of Berry Global has added significant debt and integration costs, straining Amcor's financial health. While the acquisition is expected to generate substantial cost synergies by 2028, the near-term financial strain is evident, with a slight dip in adjusted free cash flow in 2025 [2].
The company's debt-to-equity ratio of 2.24 is high but not uncommon for a capital-intensive industry. Amcor has committed to reducing leverage to 3x earnings by 2026, a target that hinges on the successful realization of $260 million in 2026 synergies. These savings, coupled with projected free cash flow of $1.8–$1.9 billion in 2026, could lower the payout ratio to 64.56%, aligning it with industry norms [2].
Investors must monitor key metrics such as synergy progress, payout ratio trajectory, and debt reduction to assess the sustainability of Amcor's dividend. While the high yield is compelling, especially in a low-interest-rate environment, the risks of delayed synergies, earnings volatility, and elevated debt-to-equity ratio must be considered [2].
References:
[1] https://www.marketbeat.com/instant-alerts/amcor-plc-nyseamcr-to-issue-013-quarterly-dividend-2025-08-15/
[2] https://www.ainvest.com/news/amcor-dividend-dilemma-high-yield-attraction-looming-trap-2508/
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