Yahoo Finance PotlatchDeltic (PCH) Announces Special Dividend of $4 Per Share
PotlatchDeltic Corporation PCH is focused on enhancing shareholders’ returns. This leading timberland owner and manufacturer of lumber in the United States announced a special dividend of $4.00 per share and a 7.3% quarterly dividend hike. This marks the company’s 2nd consecutive annual dividend increase.
PotlatchDeltic will pay out a quarterly dividend of 44 cents per share on Dec 31, 2021, to shareholders on record as of Dec 15. The special dividend will be paid on Dec 31, 2021, to investors of record on Dec 22. The company currently has a dividend payout of 23% and a dividend yield of 2.9%, based on the closing share price of $56.82 on Dec 3.
PCH has been executing regular quarterly dividend payments since 2012. The recent hike infuses greater optimism for investors. The move indicates the company’s commitment to deliver long-term shareholder value and reflects its confidence in financial position and ability to generate sufficient cash flows.
Jerry Richards, vice president and chief financial officer of PotlatchDeltic, said, “The alignment of our lumber-leveraged operating strategy with strong housing fundamentals is generating a record amount of cash. Returning approximately $275 million of this cash to shareholders in the form of a special dividend is part of a balanced capital allocation strategy that rewards shareholders. After paying the special dividend, we will still have significant capital available, including over $300 million of cash, to continue growing shareholder value.”
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At September-end, the company had $592.8 million in cash and cash equivalents. Its cash position looks strong enough to meet the current portion of long-term obligations worth $49.6 million. In the past nine months, PCH has paid dividends worth of $82.5 million.
Strategies to Drive Performance
PotlatchDeltic has been improving the business portfolio through various strategies. The company is well positioned to reap benefits from a solid U.S. housing industry, strong repair and remodel market, and liquidity position. Also, strengthening Timberlands and Wood Products segments as well as accretive acquisitions are encouraging.
The company has been actively acquiring timberlands that complement its existing land base, are cash flow accretive, and have attractive timber or higher and better use values. Timberland acquisitions are capitalized, based on the relative appraised values of timberland, merchantable timber, pre-production timber (young growth that is not yet merchantable timber), logging roads and other land improvements. During 2020, it invested $6.9 million in timberland acquisitions.
The Zacks Rank #5 (Strong Sell) company’s shares have gained 6.9% in the past three months compared with the industry’s 9% rally. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Beazer Homes’ shares have gained 38.2% year to date compared with the industry’s 30.7% rally. Earnings are expected to rise 23.7% in fiscal 2022.
TRI Pointe Group Inc. TPH currently carries a Zacks Rank #1. This Irvine, CA-based homebuilder designs, constructs, and sells single-family detached and attached homes in the United States. Robust demand and pricing as well as improved operating leverage have been driving TRI Pointe's performance. Cost-cutting initiatives implemented earlier this year and focus on entry-level buyers have been adding to the positives.
TRI Pointe’s shares have surged 50.6% year to date. Earnings for 2021 and 2022 are expected to rise 80.2% and 9.6%, respectively.
Meritage Homes Corporation MTH currently sports a Zacks Rank #1. Based in Scottsdale, AZ, Meritage Homes is one of the leading designers and builders of single-family homes. Its focus on entry-level LiVE.NOW homes has been a major driving factor.
MTH has gained 42.4% year to date. Earnings are expected to grow 74.4% in 2021 and 22.2% in the next year.
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