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Rayonier Inc. rated Buy after merger with PotlatchDeltic boosts assets and dividend yield to 5%.

Market News
04 Sep 2026
Seeking Alpha
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Bullish
Rayonier Inc. rated Buy after merger with PotlatchDeltic boosts assets and dividend yield to 5%.

Rayonier Inc. has been rated a Buy following its merger with PotlatchDeltic, which nearly doubled its share count and expanded its timberland and manufacturing assets. The company now offers a 5% dividend yield and improved cash flow, though it faces higher leverage and tight dividend coverage post-merger. Key to future gains is achieving $40 million in synergies, with diversification into real estate and wood products providing growth potential but also increased cyclicality. Management's disciplined capital allocation, including tax-efficient land swaps and share buybacks, supports the investment case despite risks from weak timber prices and integration challenges.

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