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.
