Weyerhaeuser (WY) DIvidends Date & History

Key Takeaways

• Weyerhaeuser offers a current dividend yield of 3.36% with a quarterly base dividend of $0.21 per share, annualizing to $0.84.
• The payout ratio exceeds 186%, raising concerns about earnings coverage, though the company targets 75-80% of Adjusted Funds Available for Distribution (Adjusted FAD).
• Recent levered free cash flow is negative at -$146.5 million (trailing twelve months), potentially pressuring dividend sustainability.
• Dividend history features a stable base with occasional supplemental payments, but no long-term growth streak like Dividend Aristocrats.
• Compared to timber REIT peers like RYN (around 5%) and PCH (4.3%), WY's yield is competitive but slightly lower.
• The most recent ex-dividend date was March 10, 2026, with payment on March 20, 2026.

Dividend Overview

Weyerhaeuser Company (WY), a leading timber real estate investment trust (REIT), maintains a quarterly base cash dividend of $0.21 per share, equating to an annual payout of $0.84 and a current yield of 3.36% based on a recent stock price around $25. Payments occur quarterly, with the latest ex-dividend date on March 10, 2026, and payment on March 20, 2026. The company supplements this base dividend with variable cash returns—via special dividends or share repurchases—to target 75-80% of annual Adjusted FAD. This positions WY as a moderate-yield REIT rather than a high-yield or consistent dividend growth stock, appealing to income-focused investors in the timber sector amid cyclical lumber markets.

Dividend History and Growth

Weyerhaeuser has paid dividends for over 39 years, with a quarterly base that recently increased from $0.20 to $0.21 per share starting in 2025 declarations. Historical payments show consistency, but growth has been modest for the base dividend, supplemented by variable payouts like $0.14 in early 2024, $0.90 in 2023, and $1.45 in 2022. These specials reflect strong cash years from timber harvests and lumber demand. However, total dividends have not followed a steady upward trajectory, with periods of flat or reduced base payments during downturns. As a timber REIT, distributions align with taxable income requirements (at least 90%), prioritizing consistency over aggressive growth.

Dividend Sustainability and Payout Ratio

The dividend's sustainability draws scrutiny with a trailing payout ratio of 186.67%, indicating payouts exceed earnings per share. Trailing twelve-month levered free cash flow stands negative at -$146.5 million, while operating cash flow is positive at $562 million, suggesting reliance on operations rather than FCF for coverage. Debt-to-equity ratio is 60.69% with $5.72 billion in total debt, manageable for a capital-intensive REIT but a factor in volatility. Weyerhaeuser mitigates risks via its Adjusted FAD framework (75-80% target payout) and flexibility in returns, plus timberland assets providing inflation hedges. Upcoming quarters will test resilience amid housing market cycles.

Dividend Compared to Industry Peers

In the timber REIT space, Weyerhaeuser's 3.36% yield trails peers slightly. RYN offers around 5%, bolstered by higher distributions, while PCH yields about 4.3% with quarterly $0.45 payments. These comparables reflect sector norms for yields in the 3-5% range, driven by REIT mandates and timber revenue volatility. WY's profile—stable base plus variables—mirrors peers but with a lower average due to recent conservative supplements, positioning it as average for income in forestry investments.

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Is This Stock Attractive for Dividend Investors?

Weyerhaeuser may appeal to income investors tolerant of cyclical risks in timber and housing, drawn to its 3.36% yield and REIT structure mandating high distributions. Those prioritizing yield over growth could find the base-plus-variable model suitable, especially with timberlands as natural inflation protectors. However, conservative dividend investors might hesitate due to the elevated payout ratio above 100%, negative recent FCF, and earnings volatility from lumber prices. Long-term holders in real assets may value the 39-year payment history and Adjusted FAD discipline, but it suits moderately risk-tolerant profiles rather than yield chasers or aristocrat seekers. Sector rotation toward renewables could boost appeal, balanced against macroeconomic sensitivities.

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