Vanguard Natural Resources, LLC (VNR), ConocoPhillips (COP), Weyerhaeuser Company (WY): Money Can Grow On Trees

Money can grow on trees
When I was a kid, my parents used to tell me that money doesn’t grow on trees. It’s funny to think back about those times, because now I know about timber REITs such as Weyerhaeuser Company (NYSE:WY). The company owns more sustainable forestland than any other timber REIT, which it uses to support its more than 3% dividend.

What’s great about Weyerhaeuser Company (NYSE:WY) is that it has a substantial amount of its acreage in the Pacific Northwest, which puts it in a prime position to access the Asian export markets. In fact, Weyerhaeuser Company (NYSE:WY) really stands above its nearest competitor, Plum Creek Timber Co. Inc. (NYSE:PCL). While both own more than 6 million acres, about 2.5 million of Weyerhaeuser Company (NYSE:WY)’s acres are in the Pacific Northwest, which is about 2 million more acres than Plum Creek Timber Co. Inc. (NYSE:PCL) has in the region. That’s a sustainable competitive advantage that will enable Weyerhaeuser Company (NYSE:WY) to get better prices for its timber, which will lead to a sustainable long-term rise in its dividend. That’s income that’s not only rock-solid, but deeply rooted as well.

The article 3 Rock-Solid Income Opportunities originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo owns shares of ConocoPhillips. The Motley Fool has no position in any of the stocks mentioned.

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