S&P/ASX 200 Index (ASX: XJO) dividend stock Amcor PLC (ASX: AMC) managed to buck the broader market retrace on Tuesday.
Shares in the global packaging giant closed out the day trading for $16.36 apiece, up 1.93%.
The ASX 200 went the other way, closing down 0.69% yesterday.
Following on that positive day of trading, Amcor shares are up 16% since this time last year. And this doesn't include the 76.5 cents per share in unfranked dividends Amcor delivered to shareholders over the 12 months.
More recently, as you can see on the chart above, the ASX 200 dividend stock remains down about 2% over the last month despite the past week's rebound.
But according to Baker Young's Toby Grimm, patient investors should see Amcor shares surpass those levels in 2025 (courtesy of The Bull).
Image source: Getty Images
Time to buy this ASX 200 dividend stock?
"Delays in expected volume growth in the first quarter of fiscal year 2025 have weighed on the packaging giant's share price in recent weeks," said Grimm, who has a buy recommendation on Amcor shares.
But Grimm isn't concerned about the recent headwinds hitting the ASX 200 dividend stock.
On the contrary, he said, "In our view, it creates an attractive opportunity to add this high quality US focused leader to portfolios at an appealing discount to fair value."
Part of that appeal stems from the passive income on offer, with Amcor paying dividends on a quarterly basis.
"The stock's expected dividend yield of 4.9% should afford investors time to wait for an eventual recovery in healthcare and North American beverage volumes," Grimm said.
At yesterday's closing price, Amcor shares trade on an unfranked trailing dividend yield of 4.7%, below the expected yield Grimm cites.
What's been happening with Amcor stock?
Last Wednesday, 20 November, the ASX 200 dividend stock released a bombshell merger announcement.
Namely, Amcor's intention to acquire United States-based packaging company Berry Global Group Inc (NYSE: BERY). With major operations in the US, dual-listed Amcor also trades on the NYSE.
The proposed merger would see Berry shareholders receive 7.25 Amcor shares for each Berry share they hold upon closing. Under these terms, Amcor shareholders will then own around 63% of the combined company, with Berry shareholders owning the other 37%.
The all stock deal is valued at US$8.4 billion (AU$12.9 billion).
If the merger proceeds, the joined company is expected to earn combined revenues of US$24 billion.
Commenting on the potential benefits the deal could bring for shareholders of the ASX 200 dividend stock, Amcor CEO Peter Konieczny said, "We will have a more complete and more sustainable product offering, supported by stronger innovation capabilities, global scale and supply chain flexibility."
