Wednesday, June 4, 2014

Dividends & Income Rayonier RYN another 2014 Dividend Machine

Rayonier symbol RYN is a timber company.   They have three areas of operations; forest resources, real estate, and performance fibers.    While I would like to buy this company because I believe in all three areas of business execution, I am sworn to pick stocks for the Dividend Machine portfolio that first meet all four of my Dividend Machine criteria for 2014.   Let’s take a look at Rayonier, RYN.

Best in Breed

International Paper, IP, is a similar company that was a timber company and then reorganized as a real estate investment trust.       I have owned IP in the past but now that I have come across RYN, I will be selling the IP shares I down that are not on call and buy RYN.    My reasoning is that RYN is a better company for an income investor.

RYN’s business is structured to provide cash flow to investors.  I like that.   Their five history of dividend increases shows an average nine percent per year increase in dividends.    Moreover, your capital gain during that period would have been a little over 81% even with a recent price correction of about 20% off of its 52 week high.

RYN Dividend Machine Fundamentals:

RYN earned $2.07 per share during the past four quarters and paid out dividends of $1.96 per share.  Their yield is a 4.0%.    Debt to equity ratio is .9081 which is very respectable.     The table below presents RYN’s Dividend Machine fundamentals. 

Consider this newest 2014 Dividend Machine for the income investing portion of your portfolio.

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