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March 7, 2008
The same could be said for Plum Creek Timber (PCL). RYN currently pays around 4.9% as dividend and PCL about 4.3%. As always, do your due diligence if you're interested in either.
THE UPTREND IN TREES IS ALIVE AND WELL
Ask 100 people if they'd rather own Google shares or a tree farm, and we'll guess most people will choose the world's most popular brand. But as today's chart of Rayonier shows, they should consider changing their minds.
Rayonier one of the few pure timber plays traded in the U.S. It owns or manages more than 2.5 million acres of timberland. The bulk of its holdings are located in the South. Holding shares in timberland owners – like Rayonier and its competitor Plum Creek Timber – is one of our favorite "real asset" plays in the world.
Granted, Rayonier hasn't avoided the market selloff of the past few months. It's down 12% since December. Google, on the other hand, has fallen 38%, shattered a long uptrend, and erased more than two years of gains. As Google and its fellow glamour stocks fall, the uptrend in trees lives.  |
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