Cramer Bullish on Weyerhaeuser (WY) as Housing Recovery Play
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Price: $22.46 --0%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 3.2%
Revenue Growth %: -1.1%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 3.2%
Revenue Growth %: -1.1%
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Weyerhaeuser (NYSE: WY) shares are trading stronger Tuesday, followed by a positive mention from stock guru Jim Cramer.
With 2012 upon us, Cramer highlighted a potential rebound in the housing market. Key indicators include strong home sales, an improving employment picture, and better numbers from home builders are all key contributors.
But home builders might not be the best way to play a rebound. What does Cramer suggest? How about Weyerhaeuser?
Weyerhaeuser, notes Cramer, is the second-largest owner of timberland in the U.S. with about 6.15 million acres. Weyerhaeuser is diversified between making wood building products, manufacturing paper and packaging materials, and having a small home building division.
Other factors behind Cramer's call include Weyerhaeuser moving to streamline management, cutting costs, and selling non-key assets. Those elements contribute to Weyerhaeuser being less-cyclical than before.
Having recently converted to a real estate investment trust (REIT), Weyerhaeuser now pays about 90 percent of its earnings directly to shareholders. Further, the company also has exposure to Asia and China, which should provide it some upside as those economies continue to expand.
Waiting for housing to recover isn't a problem; Weyerhaeuser's 15 cent per share quarterly dividend is currently yielding 3.2 percent, paying investors for patience.
Shares of Weyehaeuser are 2.2 percent better Tuesday.
With 2012 upon us, Cramer highlighted a potential rebound in the housing market. Key indicators include strong home sales, an improving employment picture, and better numbers from home builders are all key contributors.
But home builders might not be the best way to play a rebound. What does Cramer suggest? How about Weyerhaeuser?
Weyerhaeuser, notes Cramer, is the second-largest owner of timberland in the U.S. with about 6.15 million acres. Weyerhaeuser is diversified between making wood building products, manufacturing paper and packaging materials, and having a small home building division.
Other factors behind Cramer's call include Weyerhaeuser moving to streamline management, cutting costs, and selling non-key assets. Those elements contribute to Weyerhaeuser being less-cyclical than before.
Having recently converted to a real estate investment trust (REIT), Weyerhaeuser now pays about 90 percent of its earnings directly to shareholders. Further, the company also has exposure to Asia and China, which should provide it some upside as those economies continue to expand.
Waiting for housing to recover isn't a problem; Weyerhaeuser's 15 cent per share quarterly dividend is currently yielding 3.2 percent, paying investors for patience.
Shares of Weyehaeuser are 2.2 percent better Tuesday.
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