Weyerhaeuser Pays Regular Dividend on Increased Share Count; Timber REITs Yield 4.74%

18 10 2010

Weyerhaeuser (WY) ended last week by declaring a regular quarterly dividend of $0.05 per share, payable on December 1, 2010 to shareholders of record at the close of business on November 5, 2010.

Due to the increased share count to 536 million shares from 212 million in the prior quarters, the total payout to shareholders will be $27 million, up from $11 million paid previously. WY’s share count increased on September 1, 2010, with the special dividend payment associated with the expected REIT conversion.

WY had reduced its quarterly dividend from $0.60 per share to $0.25 per share in January 2009 and further to $0.05 per share in July 2009. However, as noted in earlier posts, the dividend is expected to increase over the longer-run after its REIT conversion to align with the other timber REITs. Currently, WY’s dividend yields 1.27% compared with the average yield of 4.74% for the three timber REITs (see table below).  WY will provide guidance on future dividends in December 2010.

The table summarizes the relative size and recent financial performance of WY relative to the three timber REITs, which are indexed in the Forisk Timber REIT (FTR, “footer”) Index to provide a benchmark for comparative analysis.

For FTR Index calculation methodology, please visit www.forisk.com and click on “Services/Equity Research.”  For detailed historical FTR Index data in Excel or questions regarding the Index, please contact Neena Mishra, nmishra@forisk.com

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