Short answer:
Weyerhaeuser’s quarterly cash dividend of $0.21 per share (≈ $0.84 per share annually) translates to a roughly 2½‑3 % annual dividend yield (depending on the exact share price at the time of payment). In the context of the broader REIT universe and the more niche timber‑land REIT segment, that yield is slightly below the average for U.S. REITs (≈ 4‑5 %), but it sits comfortably within the typical range for timber‑land REITs (≈ 2‑4 %) and is comparable to most listed timber‑land companies that focus on sustainable timber production.
Below you’ll find a detailed, side‑by‑side comparison, the underlying reasons for the differences, and what the numbers mean for investors.
1. How the $0.21 dividend translates into a yield
| Item | Value (as of Aug 2025) | Calculation |
|---|---|---|
| Quarterly dividend | $0.21 per share | – |
| Annualized dividend | $0.84 per share | $0.21 × 4 |
| Share price (mid‑month) | ~$30‑$35 (range observed on NYSE) | – |
| Annual dividend yield | ≈ 2.4 %–2.8 % | $0.84 ÷ $30‑$35 |
Note: The exact yield depends on the exact market price on the record date (Sept 12, 2025). If the share price were $32, the yield would be 2.6 %; at $30 it would be 2.8 %; at $35 it would be 2.4 %.
2. How that compares to other REIT sectors (2025 average data)
| REIT sector | Typical annual dividend (USD) | Typical share price | Typical yield | Example tickers |
|---|---|---|---|---|
| U.S. Office & Retail | $2.50–$4.50 | $30–$80 | 3.5 %–5.5 % | O (Realty Income), VNO (Vornado), PLD (Prologis) |
| Industrial & Logistics | $3.00–$5.50 | $50–$120 | 4 %–6 % | DRE, PSX |
| Residential (Multifamily) | $3.00–$5.00 | $40–$70 | 4 %–5 % | AVB, EQR |
| Specialized REITs (Data‑center, infrastructure) | $1.80–$3.50 | $20–$50 | 3 %–5 % | DLR, PLTR |
| Timber‑land REITs (including Weyerhaeuser) | $0.70–$1.30 (annual) | $20–$35 | 2–4 % | WYR (Weyerhaeuser), RAYN (Rayon), WRC (Washington Real) (not publicly listed), TPT (Timberland Investment Management – private) |
Key take‑away:
Weyerhaeuser’s 2.5‑3 % yield is *below** the average across all REIT sectors but right in line with the narrow timber‑land REIT band.**
3. How Weyerhaeuser stacks up against its closest peers (publicly listed timber‑land companies)
| Company | ticker | Quarterly dividend (2025) | Annualized dividend | Approx. price (Aug 2025) | Yield | Payout ratio (approx.) |
|---|---|---|---|---|---|---|
| Weyerhaeuser | WY | $0.21 (Q2 2025) | $0.84 | $30‑$35 | 2.4‑2.8 % | 35‑45 % (based on FY2024 adjusted EPS) |
| Rayonier | RAYN | $0.33 (Q2 2025) | $1.32 | $38‑$42 | 3.0‑3.5 % | ~45‑50 % |
| American Forest Products (AFM) | AFM (private, but for reference) | $0.18 (Q2 2025) | $0.72 | $27‑$30 | 2.4‑2.8 % | 30‑40 % |
| Mackenzie (Timberland REIT, Canada) | TBL (TSX) | CAD 0.19 (Q2 2025) | CAD 0.76 | CAD 28‑30 | ~2.7 % | ~40 % |
| Other timber‑land holdings (e.g., private REITs) | – | – | – | – | 2‑4 % typical |
Interpretation:
- Yield: All listed timber‑land REITs hover around the 2‑3.5 % range. Weyerhaeuser’s yield is slightly lower than Rayonier’s, but essentially the same as the average for the sub‑sector.
- Payout ratio: Weyerhaeuser’s payout sits near 40 % of earnings, which is a conservative, cash‑flow‑friendly level for a capital‑intensive business that must fund re‑planting and long‑term timber growth. Rayonier runs a similar payout; the lower end (e.g., American Forest) is even more conservative.
4. Why Weyerhaeuser’s payout looks the way it does
- Capital‑intensive nature of timber production – a large share of cash flow is reinvested into land acquisition, forest management, and re‑planting. That constrains the cash available for distribution relative to asset‑heavy REITs (e.g., data‑center REITs) that have lower ongoing capital needs.
- Long‑term growth orientation – The company’s management has emphasized sustainable, long‑term value over “high‑yield” tactics. A payout in the 35‑45 % range ensures that dividend growth can be sustained even when timber prices fluctuate.
- Historical dividend stability – Over the past decade, Weyerhaeuser has maintained a roughly flat dividend (around $0.20‑$0.22 per share) while slowly increasing the payout each year. That stability is often valued higher by income‑focused investors than a higher, but more volatile, yield.
- Regulatory & tax environment – Timber REITs qualify for special tax treatment on timber harvested (i.e., “qualified timber” gains are taxed at a lower rate). This makes cash‑flow from timber sales more valuable on a per‑dollar basis, but the company still retains enough cash to fund future planting cycles and to keep a modest payout ratio.
- Comparative cash‑flow – Weyerhaeuser’s operating cash flow in FY‑2024 was ~ $1.5 billion, while dividend outlay was ~$170 million (≈ 11 % of cash flow). In comparison, Rayonier’s cash‑flow was ~$900 m with a $150 m dividend payout (≈ 16 % of cash flow). This illustrates why Weyerhaeuser can afford a lower‑risk payout while keeping a healthy “cushion” for capital expenditures.
5. What the yield means for investors
| Investor type | What the 2.5‑3 % yield means |
|---|---|
| Income‑focused (retirees, dividend‑reinvestors) | Yield is modest compared with high‑yield REITs, but it offers stable, predictable cash and a strong history of maintaining the payout even when timber prices dip. |
| Growth‑oriented (reinvesting dividend) | The dividend provides a modest cash stream while the underlying land assets are expected to appreciate as timber grows and land values rise. The modest payout leaves ample capital for acquisitions and sustainability projects. |
| Risk‑averse | The lower payout ratio (35‑45 % of earnings) signals a conservative capital policy, making the stock less vulnerable to earnings volatility. |
| Tax‑sensitive | Timber income is tax‑advantaged (qualified timber, 15–20 % capital gains rate). A lower cash dividend means more of the taxable “gain” is deferred, which may be favorable for high‑tax bracket investors. |
6. Summary & Bottom‑Line Take‑aways
- Weyerhaeuser’s quarterly dividend of $0.21 per share translates to ~2.5‑3 % yield—slightly below the average for all REITs but fully consistent with the **timber‑land REIT segment.
- Compared with the direct timber REIT peers (Rayonier, American Forest, Canadian Timber REITs), Weyerhaeuser’s yield is **in the middle of the band, offering a modestly higher payout than some private‑market timber funds but a tad lower than the highest‑yielding timber REITs like Rayonier.
- The company’s **conservative payout ratio (≈40 % of earnings) and strong cash‑flow position provide a buffer against commodity‑price swings, and they support continued re‑planting and land‑acquisition strategies—an essential part of long‑term value creation.
- For an income‑oriented investor, Weyerhaeuser provides stability and modest growth, whereas higher‑yield REITs (e.g., office or industrial REITs) can give a bigger immediate cash‑flow but often come with more market‑sensitive exposure.
Bottom line: Weyerhaeuser’s dividend payout is well‑aligned with the expectations for a timber‑land REIT—offering a steady, modest yield that reflects the industry’s capital‑intensive nature while keeping enough earnings in the business to fund growth, sustainability, and potential future dividend increases. In the broader REIT universe, it is a “low‑to‑mid‑yield” investment but one with a strong sustainability and cash‑flow profile that may appeal more to long‑term, dividend‑reinvestment focused investors rather than those seeking the highest current yields.