PotlatchDeltic (PCH) announced a 2.5% hike in its quarterly dividend to $0.41 per share from $0.40. The manufacturer and seller of lumber, panels and particleboard products said that the new dividend will be paid on Dec. 31 to shareholders of record as of Dec. 15.
PotlatchDeltic’s annual dividend of $1.64 per share now reflects a dividend yield of 3.6%. The company’s CFO Jerry Richards said, “Since 2012, we have increased our dividend 32% on a per-share basis and our payout has more than doubled.” He added, “we repurchased $41 million of shares at an average price of $34 per share the last two years.”
Earlier in October, the company posted better-than-expected 3Q results. Its earnings of $1.20 per share beat the Street’s estimates of $1.13. Moreover, its revenues of $313 million also topped the consensus estimates of $308.4 million. (See PCH stock analysis on TipRanks)
Following the results, Raymond James analyst Buck Horne maintained a Buy rating and a price target of $51 (10.6% upside potential) on the stock. He said, “Given the secular growth trends we see coming from the U.S. homebuilding industry (as well as repair/remodel demand), coupled with limited incremental domestic sawmill capacity available near-term, we are comfortable raising our lumber price projections to levels that stabilize in the $450/mbf [thousand board feet] range for FY21.”
Meanwhile, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 2 Buys and 1 Hold. The average price target stands at $50.33 and implies upside potential of about 9.1% to current levels. Shares gained 6.6% year-to-date.
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