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PotlatchDeltic (PCH) Boosts Investors' Value, Raises Dividend

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PotlatchDeltic Corporation (PCH - Free Report) stock inched up 1.17% in the after-hours trading session on Dec 2, after it announced a Special Dividend and a hike of 2.3% in its quarterly cash dividend.

This leading Real Estate Investment Trust (REIT) company declared a Special Dividend of 95 cents per share, which is payable on Dec 30, 2022, to stockholders of record on Dec 21.

Also, its board of directors raised the quarterly dividend payout to 45 cents per share from 44 cents. The amount will be paid out on Dec 30, 2022, to stockholders of record on Dec 14. Based on the stock’s closing price of $47.69 per share on Dec 2, 2022, it has a dividend yield of 3.69%.

This move highlights the company’s sound and stable financial position and its commitment to reward shareholders regularly. Addressing this shareholder-friendly move, Eric Cremers, president and chief executive officer, said, “This is the third year in a row we have increased our quarterly dividend, and we have grown our regular dividend 45% higher on a per-share basis since 2012. After paying the special dividend, we will still have significant capital available to continue growing shareholder value.”

Price Movement

Over the past three months, PCH has gained 3.5%, faring better than the Zacks Building Products – Wood industry’s 0.8% rise. Since 1986, the company’s board of directors adopted a regular quarterly cash dividend policy. It paid out cash dividends of $23.3 million in 2021.

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The trend continued in 2022 as well. In the first nine months of 2022, it provided cash dividends of $96.6 million. A solid capital allocation strategy — which is a testimony to the company’s stability amid the prevailing macro-economic woes — drives long-term sustainable growth and shareholder value.

PCH is also highly active on the buyback front. In the first nine months of 2022, the company repurchased 103,010 shares under the repurchase authorization for $4.5 million. At Sep 30, 2022, it had remaining authorization of $200 million shares.

Zacks Rank & Other Stocks

Currently, PCH carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the Zacks Construction sector are CRH plc (CRH - Free Report) , Janus International Group, Inc. (JBI - Free Report) and Acuity Brands, Inc. (AYI - Free Report) .

CRH currently carries a Zacks Rank #2 (Buy). The firm manufactures cement, concrete products, aggregates, roofing, insulation and other building materials.

The company’s expected earnings growth rate for 2022 is 22.1%.

Headquartered in Temple, GA, Janus manufactures and supplies turn-key self-storage and commercial and industrial building solutions. Solid backlog levels, an impressive project pipeline, productivity improvements and commercial actions, including pricing, are expected to drive growth. The company is expected to benefit from its one-stop-shop offering with a leading market share position in self-storage doors and related design and installation services.

Janus’ earnings for 2022 are expected to rise 21%. It currently carries a Zacks Rank #2.

Acuity Brands currently sports a Zacks Rank #1. The company manufactures and distributes lighting fixtures and related components. It has been witnessing higher sales driven by product vitality in its lighting and spaces businesses, along with price increases and product and productivity improvements.

Acuity Brands has an estimated earnings growth rate of 4.1% for fiscal 2023.

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