PotlatchDeltic Announces Tax Treatment for 2023 Dividend Distributions

Rhea-AI Summary

PotlatchDeltic Corporation (PCH) announced the tax treatment for its 2023 dividend distributions on the company’s Common Stock. The dividend distributions of $1.80 per share are classified for income tax purposes as $1.3124 (72.9%) of Capital Gain Distributions and $0.4876 (27.1%) as a Non-dividend Distribution. Shareholders are encouraged to consult with their tax advisors for specific treatment of PotlatchDeltic distributions.

Insights

Tax Expert

The classification of PotlatchDeltic Corporation's dividend distributions for tax purposes has significant implications for investors. The majority portion classified as Capital Gain Distributions suggests that the company is passing on profits from the sale of assets or investments held longer than a year. This is taxed at a favorable long-term capital gains rate of 20%, which is lower than the ordinary income tax rate for many investors. This could potentially enhance the after-tax return on investment for shareholders.

Furthermore, the portion classified as Non-dividend Distribution essentially represents a return of the investors' original capital. This reduces the cost basis of the investment but is not taxable until the cost basis is fully recovered. This aspect of the distribution can defer the tax liability and could be seen as a tax-efficient method of returning capital to shareholders.

Financial Analyst

From a financial analysis standpoint, the dividend distribution details provided by PotlatchDeltic Corporation offer insight into the company's cash flow management and capital allocation strategy. A consistent dividend payout can be interpreted as a signal of financial stability and a commitment to returning value to shareholders. The total annual distribution of $1.80 per share needs to be assessed in the context of the company's earnings per share (EPS) and payout ratio to evaluate the sustainability of these dividends.

Investors should also consider the impact of these dividend classifications on the company's retained earnings and how it aligns with their growth strategy. If PotlatchDeltic is returning a significant portion of capital to shareholders, it is crucial to analyze whether the company retains sufficient capital for future growth and investment opportunities.

SPOKANE, Wash.--(BUSINESS WIRE)-- PotlatchDeltic Corporation (Nasdaq: PCH) announced today the tax treatment for its dividend distributions made in 2023 on the company’s Common Stock. The dividend distributions of $1.80 per share are classified for income tax purposes as follows: $1.3124 (72.9%) of Capital Gain Distributions (long-term 20% rate) and $0.4876 (27.1%) as a Non-dividend Distribution (return of capital).

The table below summarizes the income tax treatment of the company’s 2023 dividends:
2023 Dividend Tax Reporting Information (Form 1099-DIV)
PotlatchDeltic Corporation Common Stock: PCH
CUSIP# 737630103

Record Date	Payable Date	Distribution Per Share	Capital Gain	Return of Capital
03/03/2023	03/31/2023	$0.45	$0.3281	$0.1219
06/02/2023	06/30/2023	$0.45	$0.3281	$0.1219
09/15/2023	09/29/2023	$0.45	$0.3281	$0.1219
12/15/2023	12/29/2023	$0.45	$0.3281	$0.1219
	Total	$1.80	$1.3124	$0.4876

Shareholders are encouraged to consult with their tax advisors as to their specific treatment of PotlatchDeltic distributions.

About PotlatchDeltic

PotlatchDeltic Corporation (Nasdaq: PCH) is a leading Real Estate Investment Trust (REIT) that owns nearly 2.2 million acres of timberlands in Alabama, Arkansas, Georgia, Idaho, Louisiana, Mississippi, and South Carolina. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business and a rural timberland land sales program. PotlatchDeltic, a leader in sustainable forest management, is committed to environmental and social responsibility and to responsible governance. More information can be found at www.potlatchdeltic.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240117548831/en/

(Investors)

Wayne Wasechek

509-835-1521

(Media)

Anna Torma

509-835-1558

Source: PotlatchDeltic Corporation

FAQ

What is the ticker symbol for PotlatchDeltic Corporation?

The ticker symbol for PotlatchDeltic Corporation is PCH.

What is the tax treatment for PotlatchDeltic Corporation's 2023 dividend distributions?

The 2023 dividend distributions of $1.80 per share are classified for income tax purposes as $1.3124 (72.9%) of Capital Gain Distributions and $0.4876 (27.1%) as a Non-dividend Distribution.

How much was the total dividend per share for PotlatchDeltic Corporation in 2023?

The total dividend per share for PotlatchDeltic Corporation in 2023 was $1.80.

What are the record and payable dates for PotlatchDeltic Corporation's dividend distributions in 2023?

The record and payable dates for PotlatchDeltic Corporation's dividend distributions in 2023 were 03/03/2023 and 03/31/2023, 06/02/2023 and 06/30/2023, 09/15/2023 and 09/29/2023, and 12/15/2023 and 12/29/2023.

What percentage of the 2023 dividend distributions for PotlatchDeltic Corporation is classified as Capital Gain Distributions?

72.9% of the 2023 dividend distributions for PotlatchDeltic Corporation is classified as Capital Gain Distributions.

What should shareholders do regarding the tax treatment of PotlatchDeltic distributions?

Shareholders are encouraged to consult with their tax advisors for specific treatment of PotlatchDeltic distributions.