E Daily Stock Pick: Weyerhaeuser Co (WY)

A portfolio of stocks I'm building, named Ivy, holds 52 dividend dogs. Ivy is the fourth portfolio I've built (at a one dividend dog per week pace) since 2014. Four portfolios = IV!

Today I'm reviewing the second of five materials sector stocks this week striving to become the eighth of nine from that sector to join the Ivy folio.

That materials sector has thirteen industries all related to mining, making, and delivering essential commodities. They are: agricultural inputs; aluminum; building materials; chemicals; coal; copper; industrial metals; steel; paper; silver; specialty chemicals; gold.

Today I'm reviewing a large-cap former paper and paper products company named Weyerhaeuser Co. Their trading ticker symbol is WY.  And they are now a Diversified Real Estate Investment Trust.

Weyerhaeuser ranks among the world's largest forest product companies. Following the 2016 sale of its pulp business to International Paper, Weyerhaeuser operates three business segments: timberlands, wood products, and real estate.

Weyerhaeuser is structured as a real estate investment trust and is not required to pay federal income taxes on earnings generated by timber harvest activities. Earnings from its wood products segment are subject to federal income tax. Weyerhaeuser acquired fellow timber REIT Plum Creek in 2016.

The company was founded in 1900 and is headquartered in Seattle, Washington.

I use three key data points to gauge dividend-paying equities or funds like Weyerhaeuser Co:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest.

Those three basic keys, however, best tell whether a company has made, is making, and will make money.

WY Price

Weyerhaeuser's price per share closed at $24.72 yesterday. A year ago its price was $33.92. Price fell  $9.20 or 27% in the past year.

Assuming Weyerhaeuser's stock trades in the range of $20.00 to $30.00 this year, Weyerhaeuser's recent $24.72 price could rise by $3.28 and go to $28.00 by August 2020.

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