Rayonier Inc (NYSE:RYN): A High-Yield Dividend Stock with Lasting Business Practices

When looking at dividend stocks, investors often want companies that provide good yields and also show lasting business practices. One useful method uses filters to find stocks with good dividend scores while keeping sound profitability and financial condition measures. This process helps find companies able to maintain dividend payments across different market environments, mixing current income with lasting security. Rayonier Inc (NYSE:RYN) appears as an interesting option through this filtering process, deserving more detailed review for portfolios centered on income.

Dividend Profile Review

Rayonier shows several appealing traits for dividend investors, starting with its large yield and maintainable payout setup. The company's present dividend yield of 4.40% offers significant income creation next to the wider market, especially when compared to the S&P 500 average yield of about 2.36%. This higher yield becomes more interesting when looking at its basis in lasting business practices instead of short-term market situations.

The maintainability of Rayonier's dividend program is backed by several main points:

• Payout ratio of 31.31% shows large earnings coverage
• Ten-year history of steady dividend payments
• Average dividend growth rate of 4.39% per year
• Earnings growth moving faster than dividend rises

These numbers indicate the company keeps enough ability to continue dividend payments while holding enough earnings for reinvestment and operational needs. The careful payout ratio is especially significant because it gives a cushion against possible earnings changes, a key point for income investors focusing on payment dependability.

Profitability and Financial Condition

Beyond dividend-specific numbers, Rayonier shows sound operational results and financial steadiness. The company reaches a notable 8/10 profitability score, reflecting good returns across several aspects of its timberland and real estate activities. This profitability base is needed for dividend maintainability, as steady earnings creation provides the required cash flow to support continuing distributions.

Main profitability points include:

• Return on Equity of 33.06%, doing better than 93% of industry competitors
• Return on Assets of 21.66%, placed in the top group of specialized REITs
• Profit margin of 68.53%, going beyond most rivals
• Steady positive earnings and operating cash flow over five years

The company's financial condition score of 8/10 further supports its dividend maintainability. Good liquidity ratios, including a current ratio of 3.50 and quick ratio of 3.38, show enough ability to meet short-term responsibilities without affecting dividend payments. A workable debt-to-equity ratio of 0.37 shows careful leverage use, lowering financial risk during economic declines.

Valuation and Growth Points

While Rayonier's valuation numbers seem high on some standard measures, background is needed for correct evaluation. The company's price-to-earnings ratio of 57.93 shows market acknowledgment of its good profitability and growth possibilities, although it goes beyond wider market averages. However, other valuation measures give a more detailed view, with interesting enterprise value to EBITDA ratios compared to industry competitors.

Growth numbers show mixed signs but generally support the dividend idea:

• Revenue growth of 9.90% in the last year
• Five-year average revenue growth of 12.16%
• Expected earnings per share growth of 7.70% per year
• Good historical EPS growth of 16.22% in the last year

The mix of sensible growth expectations with good present profitability makes a positive setting for dividend upkeep and possible rises over time.

Full Fundamental Evaluation

Rayonier's total fundamental rating of 7/10 shows balanced strength across several review groups. The company's detailed fundamental analysis report shows special quality in profitability and dividend traits, supported by sound financial condition. For dividend investors, this full strength across operational and financial numbers gives trust in the company's ability to keep its income distribution through various market environments.

The timberland REIT's business model naturally gives some protection from economic cycles, as timber assets keep value and continue to produce revenue even during drops. This trait matches well with dividend investment plans looking for dependable income streams across market settings.

Investors curious about finding similar dividend chances can view the full filtering results to find other companies meeting these balanced standards for dividend maintainability.

Disclaimer: This review is based on present fundamental data and filtering methods. It is not meant as investment guidance. Investors should do their own research and think about their personal financial situations before making investment choices. Past results do not ensure future outcomes, and dividend payments depend on company decisions and market environments.