Weyerhaeuser to pay one-time special dividend, sets new $1 billion stock buyback program

Shares of Weyerhaeuser Co.

tacked on 0.4% in premarket trading Wednesday, after the real estate investment trust focused on timberlands and the manufacture of forest products announced a one-time special dividend and a new $1 billion stock repurchase program. The interim supplemental dividend of 50 cents a share is payable to shareholders of record on Oct. 5 on Oct. 19. That’s on top of the company’s regular quarterly dividend of 17 cents a share. At Tuesday’s stock closing price of $35.26, and including the special dividend, the new annual dividend rate would imply a dividend yield of 3.35%, which compares with the yield for the SPDR Real Estate Select Sector ETF

of 3.01% and the implied yield for the S&P 500

of 1.38%. The new stock buyback program represents about 3.8% of Weyerhaeuser’s market capitalization of $26.44 billion as Tuesday’s closing. Separately, the company said it will invest $1 billion to grow its timberlands portfolio by the end of 2025. The stock has edged up 5.2% year to date through Tuesday, while the REIT ETF has run up 26.6% and the S&P 500 has advanced 15.9%.

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