FEDERAL WAY (dpa-AFX) - While reporting higher third-quarter earnings and sales, Weyerhaeuser Co. (WY) on Friday said it is reinitiating a quarterly dividend that was temporarily suspended in May amid the coronavirus pandemic.
For the fourth quarter 2020, the board of directors has declared a quarterly base cash dividend of $0.17 per share.
Further, the private owner of timberlands is also implementing a new dividend framework to enhance its ability to return cash to shareholders across a variety of market conditions.
The new dividend framework includes two components, such as sustainable quarterly base cash dividend and variable supplemental dividend. The company expects to supplement its quarterly base dividend with an additional return of cash, as appropriate, to achieve a targeted total annual return to shareholders of 75 to 80 percent of annual Adjusted Funds Available for Distribution.
The company noted that demand for housing and wood products has proven resilient over the past several months.
Looking ahead for the fourth quarter, timberlands segment expects sequentially higher earnings and Adjusted EBITDA in the fourth quarter.
Devin Stockfish, president and chief executive officer, said, 'Entering the fourth quarter, Weyerhaeuser is operating from a strong financial position, and we are increasingly confident that the recent strength in U.S. housing will continue notwithstanding ongoing macroeconomic headwinds.'
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