Planting Dividend Seeds With Timber REITs

As dividend investors, we are always on the lookout for future dividend growth opportunities as well as current income via relative high yield. Timber REITs are investment vehicles that can offer a current relative high yield while also being defensive in nature against rising inflation as it is a commodity-based investment. A timber REIT is simply a Real Estate Investment Trust that owns income-producing properties such as timberland and forests for wood production and paper. Of course, the very nature of timber REITs make them very dependent on the homebuilding sector for a lot of their profits, but they also have the luxury of postponing harvests should demand weaken from the homebuilding sector. As timber ages and grows, the resulting commodity only increases in value, which puts timber REITs in a unique position. Let’s take a closer look at some of the more popular timber REITs and one industrial company... Read more