Graphic Packaging Holding Company (GPK) will hike it's quarterly dividend to $0.075 per share.

The first increased cash dividend of $0.075 per share is payable January 5, 2017 to stockholders of record on December 15, 2016.

"Free cash flow generation in the business remains strong. Our focus on growing free cash flow and returning more of it to shareholders over time has not changed. We are pleased to announce that our Board of Directors has declared a 50% increase in our quarterly dividend to $0.075 per share. This material increase in the quarterly dividend demonstrates the confidence we have in our free cash flow profile. We remain committed to a balanced capital allocation strategy, which includes reinvesting in our business to drive strong cash returns on cash invested, strategic acquisitions at compelling post-synergy multiples, and returning cash to shareholders through dividends and share repurchases," said President and CEO Michael Doss.

The provider of paper-based packaging solutions for a wide variety of products to food, beverage and other consumer product companies currently has an estimated dividend yield of 2.4%.