How Safe Is Weyerhaeuser's Dividend?

Weyerhaeuser (NYSE: WY) has a great core business: owning timberland. The problem is that, layered atop this, the real estate investment trust (REIT) has another business that is a bit volatile. The last two years are a great example of why dividend investors need to tread carefully here.

Dividend investors generally like to own simple businesses that hand out regular, consistent dividend checks. If the payment is monthly, all the better. If it grows over time, great! (This is why Dividend Aristocrats, a list of the companies that have strung together 25 annual dividend hikes, are so popular.) What dividend investors don't generally like to see are dividend cuts, which can be a real drag for anyone that's trying to live off the income their portfolio generates.

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Source Fool.com