Shiver Me Timbers: Investing In Timber For Dividends

With the homebuilding stocks on a tear over the past twelve months, what are some other industries that could be big benefactors from the surge in housing? One industry I find intriguing is in the specialty REIT space, specifically, the timer REITs. The big three timber REITs, Rayonier (RYN), Plum Creek Timber (PCL) and Weyerhaeuser Company (WY) all have there respective exposure to the core timber and housing market, but the inner-workings of each company makes them solid investments in their own right; they all also pay dividend yields in excess of 2.5%. Plum Creek Timber is one of the largest owners of private timberland in the U.S. and pays the highest dividend yield of the three at 3.3%. The company produces lumber and plywood at various wood products manufacturing facilities in the Northwest. The fact that Plum Creek is such a large operator helps the... Read more