) - a real estate investment trust (REIT) - raised its
third-quarter cash dividend sequentially by 11.4% to 49 cents per
share from 44 cents. The new dividend will be paid on Sep 30,
2013 to stockholders of record as of Sep 16, 2013.
In particular, the 9th dividend hike by Rayonier in the last
11 years is backed by the successful commencement of Rayonier's
Cellulose Specialties Expansion project. In addition, the
company's optimism regarding future cash flows and the improving
timber and real estate market fundamentals also supported its
decision to raise the dividend.
A steady dividend payout is in line with Rayonier's long-term
strategy of providing attractive risk-adjusted returns to its
stockholders. The announced quarterly dividend rate at the
company equates to an annualized rate of common stock dividend of
$1.96 per share, resulting in a yield of around 3.4%, based on
Rayonier's closing price on Jul 22.
This international forest products company - Rayonier - came
up with solid first-quarter results, with earnings of 79 cents
per share, beating the Zacks Consensus Estimate by 27.4% and the
year-ago quarter earnings by 92.7%. Results reflected the gain
from the booming cellulose specialties market and rise in forest
resources revenues. Also, as of Mar 31, 2013, the company had
cash and cash equivalents of $266.0 million.
Hence, with strong quarterly results, improving fundamentals
and efficient capital management the company is well poised to
maintain its growth curves and simultaneously benefit the
shareholders with steadily rising dividends.
In addition to Rayonier, in May 2013,
Plum Creek Timber Company Inc.
) announced a 5% hike in its quarterly cash dividend rate to 44
cents per share, based on its bullish expectations of persistent
growth of long-term, sustainable cash flow.
As a matter of fact, solid dividend payouts are arguably the
biggest attraction for REIT investors as the U.S. law requires
these companies to distribute 90% of their annual taxable income
in the form of dividends to shareholders.
Rayonier carries a Zacks Rank #3 (Hold). However, two other
stocks that are performing well and deserve a look include
Universal Forest Products Inc.
The Macerich Company
), both of which hold a Zacks Rank #2 (Buy).
MACERICH CO (MAC): Free Stock Analysis Report
PLUM CREEK TMBR (PCL): Free Stock Analysis
RAYONIER INC (RYN): Free Stock Analysis
UNIVL FST PRODS (UFPI): Free Stock Analysis
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