Why Rayonier Shares Were Cut Down

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of timberland management company Rayonier (NYSE: RYN  ) plunged 14% today, after its quarterly results and outlook missed Wall Street expectations.

So what: Rayonier has been sluggish in recent months on worries over weak specialty-pulp prices, and today's Q2 miss -- EPS of $0.44 vs. the consensus of $0.46 -- only reinforces those concerns. Unfortunately for Rayonier, generic pulp producers continue to increase sales into specialty markets and drive down prices, giving analysts plenty of concerns over its profitability going forward.

Now what: Management expects its 2013 operating income to come in slightly above 2012, and its 2013 EPS to be moderately above 2012. "We are on track for another strong year as our businesses continue to execute well, generating operating cash flows that are well above our dividends," Rayonier Chairman and CEO Paul Boynton reassured investors. With the stock plunging to new 52-week lows today and boasting a dividend yield of 3.5%, now might even be an opportune time to buy into that bullishness. 

More dynamic dividend picks

Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2700283, ~/Articles/ArticleHandler.aspx, 12/21/2014 7:13:38 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement