Weyerhaeuser is one of the highest paying dividend stocks we cover. But our goal in this report is to determine if it is also one of the best dividend paying stocks we cover.
Weyerhaeuser Company (WYE) is organized as a real estate investment trust (REIT). However, its primary business is in growing and harvesting timber, as well as manufacturing, distributing and marketing products made from timber.
The company owns nearly seven million acres of timberland, primarily in the United States. And it manages another 14 million acres under long-term licenses in Canada. The company’s three operational segments include Timberland, Wood Products, and Cellulose Fibers.
Weyerhaeuser was founded in 1900 in Longview, Washington. And it is currently headquartered in Federal Way, Washington.
Like many firms (particularly real estate firms) WYE has shown little growth in sales over the previous seven – eight years. Also, like many firms, it cut its dividend during or just after the market meltdown of 2008 / 2009.
However, unlike many firms, it has shown a decent increase in its profits with a corresponding increase in cash flow from operations since that time. Furthermore, WYE’s financial strength is at least average, and its growth prospects are even more favorable.
But, despite its high dividend yield, WY is a rather expensive firm. On most of the popular price multiples, it is richly priced. The market seems to have recognized whatever favorable qualities WY has over its peers. WY is not a company we consider to be one of the best dividend paying stocks we cover.
Stat Sheet – Weyerhaeuser Company 4/13/16
|Industry||Forestry & Wood Products|
|Market Cap||$ 16,339|
|Growth Prospects||Above Average|
(Our assessment of this firm’s fundamentals will be in effect for the rest of calendar year 2016.)
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