5% Yield From An $8 Stock?

A Cheap, "House Money" Investment?

August 27, 2025

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The cardboard box industry is a dangerous game.

Okay, maybe not dangerous, but it is a sector teaming with mergers, spin-offs, acquisitions, divestitures, and more.

The industry has more intrigue than it should. And this often creates unique buying opportunities. Case in point, the packing sector had a slew of mergers over the past few years. And this has led to many container conglomerates lagging the market.

A big company, fresh off an acquisition isn’t Wall Street’s top pick when tariffs and trade wars are on everyone’s mind.

In 2024, packaging giants WestRock and Smurfit Kappa merged to create Smurfit Westrock. Smurfit Westrock, one of the world’s largest producers of cardboard pizza boxes, was trading for over $56 per share last November. Today, the company is selling for $45.51 per share.

It’s a similar situation for the focus of today’s report…

Amcor plc ($AMCR) is an Australian packaging business that dates all the way back to 1896. The firm designs, develops, and manufactures packages. They make recyclable coffee cups, candy jars, plastic food bags, drink pouches, milk cartons, and more.

In fact, there’s a good chance that you’ve used an Amcor product recently…

Amcor makes the plastic caps that are used on Heinz Tomato Ketchup squeeze bottles.

Mars Inc. and Mondelez International both uses Amcor packaging for snacks.

And Amcor makes McFlurry cups for McDonald's.

Amcor operates in over 40 different countries and is one of the world’s largest packaging companies.

It is worth noting that modern “Amcor plc” is a result of Amcor’s 2019 acquisition of Bemis Company, Inc. — which led to Amcor listing on the NYSE. Before this event, Amcor didn’t trade on a major U.S. exchange.

When Amcor first began trading on the NYSE in June, 2019, the stock was valued at $10.93 per share.

Between 2020 and 2022, Amcor shares surged past $13 per share.

And 12 months ago, Amcor traded for $11.17 per share.

But due to tariffs and the company’s recent acquisition of plastic packager Berry Global, Amcor shares have fallen to their current trading price of $8.53.

At the current valuation, Amcor plc has:

  • A price to earnings ratio of 10.61

  • A 5.86% starting dividend yield

  • A 5-year dividend CAGR of 1.76%

  • A payout ratio of 72.55%

This is a beaten down, unpopular stock. And while I don’t like the firm’s slow dividend growth or payout ratio that’s above 70%, Amcor is a high-yield stock that operates in a “boring but necessary” sector. Disposable coffee cups, milk cartons, and ketchup bottlecaps aren’t the most exciting products. But, they are consistently in-demand.

Amcor could be a solid, high-yield dividend stock.

And I’d be interested in using “house money” — cash back from credit cards and options premiums — to build a position while Amcor is trading near its 52 week low.

Learn from this investor’s $100m mistake

In 2010, a Grammy-winning artist passed on investing $200K in an emerging real estate disruptor. That stake could be worth $100+ million today.

One year later, another real estate disruptor, Zillow, went public. This time, everyday investors had regrets, missing pre-IPO gains.

Now, a new real estate innovator, Pacaso – founded by a former Zillow exec – is disrupting a $1.3T market. And unlike the others, you can invest in Pacaso as a private company.

Pacaso’s co-ownership model has generated $1B+ in luxury home sales and service fees, earned $110M+ in gross profits to date, and received backing from the same VCs behind Uber, Venmo, and eBay. They even reserved the Nasdaq ticker PCSO.

Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals.

Disclaimer: This article is for entertainment purposes only. It is not financial advice, always do your own research.