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Bullboard - Stock Discussion Forum West Fraser Timber Co Ltd T.WFG

Alternate Symbol(s):  WFG

West Fraser Timber Co. Ltd. is a diversified wood products company. The Company is engaged in manufacturing, selling, marketing and distributing lumber, engineered wood products, including oriented strand board (OSB), laminated veneer lumber (LVL), medium-density fiberboard (MDF), plywood, particleboard, pulp, newsprint, wood chips and other residuals and renewable energy. Its products are used... see more

TSX:WFG - Post Discussion

West Fraser Timber Co Ltd > Special div?
View:
Post by SilverSpewn on Feb 08, 2021 8:56pm

Special div?

What does everyone think regarding the odds of a special dividend coming to shareholders of the new WFG following the acquisition?
Comment by JohnnyTSX on Feb 09, 2021 10:16am
I can't see it at this time. I think they will use cash to strengthen the balance sheet post acquisition, and work towards integrating processes and systems (ie mgmt, sales teams, etc). If they continue to print cash for a few more quarters, I fully expect to see a dividend raise.
Comment by Nystrom on Feb 09, 2021 11:02am
Norbord had a higher div return policy and higher debt load. WFT had a lower div return policy and lower debt load. I think the combined company of WFG will use the cash pile they are sitting on to reduce total debt and substantially increase the quarterly div. A mix of both policies. 
Comment by lifeisgood1010 on Feb 09, 2021 11:06am
My 2 cents on Div. or special div. I beleive whe will not have a announcement for a special div. this coming quarter but  i think the regular one will be increase from 20 cents to 25 or 30 cents The reason: There was just to much of a difference between the WFT and OSB one. I think Brookfield will have a small influence on the future policy and with all that tons of cash coming in, they ...more  
Comment by Dadsaid2 on Feb 09, 2021 4:31pm
There will.be a special dividend 100%. Brookfield didn't sign off on the merger for shits & giggles. They want some of that mountain of Q3 cash that both companies have and will add to in Q4. Norbord Q4 earnings will be one for the ages. Unlike lumber prices that were soft.in Q4 osb kept rising and the Q4 avg is pretty much insane. GLTA
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