Business Magazine

Plum Creek Timber - PCL

Posted on the 22 September 2011 by Divstkforcomman @DivStkForComMan
Plum Creek Timber Company, Inc. is a private timberland owner in the United States. They own 6.8 million acres of timberlands located in nineteen states. PCL's timberlands are diversified geographically and by species mix and age distribution. PCL manages their timberlands in four segments:
  • Northern Resources Segment: consisting of timberlands in Maine, Michigan, Montana, New Hampshire, Oregon, Vermont, Washington, West Virginia and Wisconsin.
  • Southern Resources Segment: consisting of timberlands in Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina and Texas.
  • Natural Resource Businesses: focuses on opportunities for oil and natural gas production, mineral extraction, wind power and communication and transportation rights of way.
  • Real Estate Segment: comprises its sale of timberlands and sales of non-strategic timberlands.
PCL is the first ever timber REIT. They currently pay their shareholders $0.42 per share, that is a hefty 4.74% dividend yield as of September 21st, 2011. They have paid a dividend since May 9th, 1990 and consistently increase their dividend payout. Although their stock price may fluctuate, this company is not going anywhere. They are a dividend champion and you should have some PCL in your portfolio.
PCL's trees will continue to grow adding value as we wait for the housing market to recover. When the housing market gets back to normal, PCL will have a great selection of prime lumber to offer. In a nut shell, here is PCL's business model: 1) Get land, 2) Plant trees on land, 3) Cut down tree and sell tree and finally 4) repeat steps 1 through 3. Just think, as the sun makes the trees grow it also helps grow your timber investment!
Buying into timber makes for an excellent investment in a slow economy and can give a high earnings yield. A forest's value continues to grow with little costs, year over year! Click here to visit Plum Creek's website, and here for their Investor Relations website. Also, feel free to watch the video below, a great introduction to Plum Creek Timber Company! A solid investment in wood!

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