3 Dividend Stocks That Offer Good Passive Income

Dividends are always great for providing investors with some passive income. Despite the market’s rise to 12,400, there are still some pretty good yields out there. Today, I want to look at stocks that generate revenue from timber products. Today’s list include two REIT’s that own millions of acres in land and one company that sells more paper products that anyone else in the United States. Here are 3 dividend stocks yielding over 3%.

Plum Creek Timber (PCL) is the largest of the timber real estate investment trusts on the market. The company markets itself as the largest most diverse private landowner in the United States. Plum Creek manufactures lumber products, plywood, and fiberboard. The stock is a good income play too.

Plum Creek is currently yielding 3.8% and pays a dividend of $1,68 per share.

Potiatch Corporation

Potiatch Corporation (PCH) is a real estate investment trust that owns timberlands in Arkansas, Idaho, and Minnesota.  The company derives its revenue by growing and selling timber to customers. Potiatch owns over 1.5 million acres of land. Potiatch owns and operates six manufacturing facilities that produce lumber and panel products. The company has been in business for over 108 years.

Potiatch should benefiting from the recent rise in lumber prices. Shares are not cheap but the yield is excellent at 5%. The balance sheet is good for a real estate investment trust and the company has plenty of worthwhile assets.

International Paper

The two REIT’s above are pure timber plays. International Paper (IP) on the other hand manufactures packaging products and printing papers. If you have seen the Hammermill brand at Staples or Office Depot then you have seen an International Paper product. The company manufactures more plastic lids and paper cups than anyone in the wold. International Paper supplies a lot of the big fast food chains like McDonald’s.

International Paper is current paying $1.05 which equates to a 3.5% yield.

There is more to dividend investing than just the yield but finding a good yield is a good place to start.

 

Comments

  1. Sounds like some pretty good yields once again, Mark! Out of the three, I think my top pick would be Plum Creek Timber. They may not shoot out of the gate in the next couple of years, but new housing has got to bounce back at some point. When it does, I think this stock will have some excellent returns, not to mention the dividend. :)

  2. avatar optionsdude says:

    I agree wholeheartedly with the above comment. The US population is growing and there is new family formation annually. It may take 4 or 5 years for housing to bounce back and eliminate some of the foreclosure supply but there is always some construction or remodeling. We all know how markets overshoot so there will be a shortage of housing which means you can be paid a nice dividend while waiting for the capital gains.

  3. I’ve been interested in timber for a while, but although it is a REIT, it is also a commodity play…I will need to look into this more!

  4. avatar Moneycone says:

    Good time to get into REITs in my opinion!

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