A Look at Weyerhaeuser

By on May 11, 2011

CNBC took a somewhat misleading look at the past and future of Weyerhaeuser (WY), a holding in the SMA portfolio.

The commentator, Brian Sullivan, claimed WY was one of the worst performing stocks in the S&P 500 over the past 52 weeks. This may appear to be true given a layman’s look at the chart. However, there was a $26.47 special dividend paid in July 2010, so saying the stock has dropped substantially is completely misleading. WY’s price adjusted for the dividend from one year ago is $17.32 so the stock is actually up about 27% over the past 52 weeks. The S&P 500 is only up about 16% over the past year, so saying WY has been a laggard is off base.

Since the stock dividend WY has substantially outperformed the Guggenheim Timber ETF (CUT); see chart below. WY has vast holdings of timber and appears to be a solid holding in tax-deferred accounts due to its REIT status.

Weyerhaeuser [Red] versus Guggenheim Timber ETF [Blue]

One Comment

  1. La Toy Ota

    June 3, 2011 at 8:40 pm

    They give me wood. Get it? Wood?

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