Tuesday, July 7, 2009 11:54 AM
Weyerhaeuser: We're still paying a dividend
David Berman
Weyerhaeuser Co. has become the latest in a long line of U.S. companies to slash its dividend, announcing on Tuesday that it will reduce its quarterly payout to a mere nickel from 25 cents (U.S.). The latest cut follows an earlier reduction in December, when the company slashed its dividend to 25 cents from 60 cents.
Certainly, this move conforms to a rash of dividend cuts over the past 12 months that has made the dividend environment in the United States the worst in 50 years.
But what stands out with Weyerhaeuser is its level of obfuscation. As Bob O’Brien , a Barron’s blogger, pointed out, the company buried its lead. He writes:
“Weyerhaeuser isn’t in the journalism game, so it can’t be faulted on those measures. But it can still be taken to task for committing unpardonable offenses against the interests of its shareholders. And then taking some pains to conceal the latest slight from those shareholders.
Point of fact: the latest press release from the corporate offices of the forest products giant is headlined: ‘Weyerhaeuser Company Declares Dividend.’
When it should have been titled: Weyerhaeuser Company slashes dividend. It used to be a quarter. This time it’s a nickel. That’s an 80 per cent haircut. The word ‘slashes’ doesn’t merit inclusion in the release. Not even ‘cut.’ There’s no reference to the former 25-cent payout. Only an oblique mention of ‘this dividend decision.’
Shame on ‘em.”
