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 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.
The article Why Rayonier Shares Were Cut Down originally appeared on Fool.com.Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.