Looking for a high-yielding S&P/ASX 200 Index (ASX: XJO) dividend stock to help take the sting out of rising inflation?
Then you might want to have look into Amcor PLC (ASX: AMC).
Shares in the global packaging giant, which commands a market cap of $14.0 billion, closed up a slender 0.1% on Tuesday, trading for $12.08 apiece.
For some context, the ASX 200 closed the day down 0.7%.
As for that passive income, Amcor has paid out 79.2 cents per share in dividends over the last 12 months.
Unlike most ASX 200 dividend stocks, Amcor pays out dividends on a quarterly basis rather than twice a year. At the current share price, Amcor trades on an unfranked trailing dividend yield of 6.6%.
And with the Amcor share price down 22.6% over the past 12 months, Sanlam Private Wealth's Remo Greco believes the company is bargain priced (courtesy of The Bull).
Should you buy this ASX 200 dividend stock today?
"This global packaging maker is trading at a discount," said Greco, who has a buy recommendation on Amcor shares.
Commenting on the first reason he's bullish on the ASX 200 dividend stock, Greco said, "We expect the company to generate value from the Berry Global acquisition in a deal it closed earlier this year."
Amcor announced the deal, valued at US$8.4 billion (AU$13 billion at the time) on 20 November 2024. The company completed its all-stock acquisition of the United States based packaging company on 30 April.
The Berry Global acquisition helped drive Amcor's Q4 FY 2025 net sales to US$5.08 billion, up 43% year-on-year, excluding currency impacts.
And adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for the three months also increased by 43% to US$789 million.
Turning to the second reason this ASX 200 dividend stock is a buy, Greco said:
The company has guided for adjusted earnings per share of between 80 cents and 83 cents in fiscal year 2026. This represents constant currency growth of between 12% and 17%. Amcor forecasts a significant increase in free cash flow of between $1.8 billion and $1.9 billion.
And if it's some inflation beating passive income that you're after, then this rounds off the third reason you might want to buy Amcor shares today.
"The stock was recently trading on an attractive dividend yield of around 6%. This stock appeals, particularly if the market becomes more volatile," Greco concluded.
