) Board of Directors approved a 13.0% hike in the company's
quarterly dividend rate. The revised quarterly rate now stands at
17 cents per common share compared with 15 cents previously,
resulting in an annual rate of 68 cents per common share. The
revised dividend will be paid on November 30 to shareholders of
record as of the close of business on November 9.
The company has been following a consistent policy of returning
cash to its shareholders through payment of regular cash dividends
since 1974. In addition to its regular dividend payments, the
company in July 2010, paid Special Dividend amounting to $26.41 per
Recovery witnessed in the U.S. housing market is working in
favor of Weyerhaeuser. The impact was also witnessed in the
company's second quarter 2012 results with revenue increasing 11%
on the back of stellar performances in the Wood Products and Real
Estate businesses. Cash balance hiked 18%.
We believe as U.S. housing market is showing signs of revival,
the demand for wood products; and in turn, domestic timbers are
likely to strengthen. Backlog for Real Estate remains solid while
single-family home closings are likely to improve. All these
positives are likely to generate solid cash for the company, which
can be utilized for rewarding shareholders via dividend payments or
Weyerhaeuser is one of the leading US forest product companies
with approximately 6 million acres of timberland in North America.
The company is scheduled to report its third quarter 2012 on
October 26, 2012.
The current Zacks Consensus Estimate for the third quarter of 2012
is 17 cents, representing a year-over-year growth of 38.9%.
Estimates for 2012 and 2013 are 41 cents and 86 cents, reflecting
annual growth of 25.6% and 106.5%, respectively.
We currently maintain a Neutral recommendation on Weyerhaeuser. The
stock also bears a Zacks #2 Rank, implying a short-term Buy rating.
The company's prime competitors
International Paper Co.
) also bear a Zacks #2 (Buy) Rank.
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