Is the dividend sustainable given Weyerhaeuser's recent cash flow and earnings trends?

Answer

The press release you quoted tells us that Weyerhae‑euser Co. (NYSE: WY) has declared a quarterly cash dividend of $0.21 per share, payable on 12 September 2025. However, the release does not provide any information on the company’s recent cash‑flow generation, earnings results, balance‑sheet strength, or dividend‑policy history.

Because dividend sustainability is fundamentally a function of a company’s ability to generate enough cash (or free cash flow) to cover the payout, we need to look at a few key metrics that are not disclosed in the announcement:

How to assess Weyerhae‑euser’s dividend sustainability

1. Pull the latest quarterly (or annual) financial statements – preferably the 10‑Q filed for the quarter ending June 2025 and the 10‑K for 2024.
   
2. Calculate the free‑cash‑flow per share:
   [ \text{FCF} = \text{Operating cash flow} - \text{CapEx} ]
   Then divide by the number of common shares outstanding.
   
3. Compare the dividend to FCF per share. If the $0.21 quarterly dividend (≈ $0.84 per share annually) is comfortably below the FCF per share, the payout is cash‑based and more likely to be sustainable.
   
4. Check the payout ratio:
   
   • Dividend ÷  Net income per share (if using earnings)
     
   • Dividend ÷  FCF per share (if using cash)
     A ratio under 50 % for earnings or under 70 % for free cash flow is generally considered “safe” for a mature, cash‑generating firm.
     
5. Review leverage – Weyerhae‑euser’s debt‑to‑EBITDA and interest‑coverage ratios will tell you how much of its cash flow is already earmarked for debt service.
   
6. Look at recent trends – If operating cash flow and net income have been flat or rising over the past 4–8 quarters, that supports sustainability. Conversely, a downward trend would raise a red flag.
   

What we can say right now

• The dividend announcement alone does not confirm sustainability.
  
• If Weyerhae‑e‑euter’s recent cash‑flow and earnings have been stable or improving, and if the payout ratio (dividend ÷  earnings or dividend ÷  free cash flow) is within a historically “reasonable” range (e.g., < 50 % of earnings, < 70 % of free cash flow), then the $0.21 quarterly dividend is likely sustainable.
  
• If the company has experienced shrinking operating cash flow, rising CapEx, or a high and growing debt load, the dividend could be at risk, especially if the payout ratio is already high.
  

Next steps for a definitive answer

1. Download Weyerhae‑euter’s most recent 10‑Q/10‑K filings (SEC EDGAR) and locate the cash‑flow statement and income statement.
   
2. Compute the key ratios listed above.
   
3. Compare the current payout to historical levels (e.g., the dividend paid in prior quarters/years) to see if the company is raising, holding, or cutting the dividend.
   

Until those figures are examined, any conclusion about the dividend’s sustainability would be speculative. If you can provide the relevant cash‑flow or earnings data (or a link to the filing), I can run the calculations and give you a concrete assessment.