- Plum Creek Timber (NYSE:PCL) shareholders are set to enjoy a dividend hike of up to 13% upon its merger with Weyerhaeuser (NYSE:WY), part of the motive behind RBC analyst Paul Quinn's upgrade of PCL shares to Outperform from Sector Perform with a $56 stock price target, raised from $42.
- The combined company will continue to pay WY’s $1.24/share annual dividend, while PCL shareholders receive $1.76/share; given that PCL shareholders will receive 1.6 WY shares per PCL share, the equivalent dividend payments will rise to $1.98, a 13% improvement, Quinn explains.
- Quinn believes the combo's synergies, increased liquidity and broadened timberlands diversity should make WY-PCL the investment choice for any investor looking for exposure to timber markets.
Weyerhaeuser deal means 13% dividend hike for Plum Creek, analyst says
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Symbol | Last Price | % Chg |
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PCL | - | - |
Plum Creek Timber Company, Inc. |