Weyerhaeuser Announces Tax Treatment of 2021 Distributions

Rhea-AI Summary

Weyerhaeuser Company (NYSE: WY) announced that its 2021 dividends, totaling $1.18 per share, are classified as Capital Gain Distributions for tax purposes, treated as long-term capital gains. The dividends were distributed in five installments throughout 2021, including $0.50 in October. These distributions are not eligible for the 20% qualified business income deduction. Looking ahead, the company hints at a significant non-dividend component for 2022 distributions due to an expected supplemental dividend. Shareholders are advised to consult tax professionals regarding their individual tax impacts.

Positive

• Total dividend distribution of $1.18 per share for 2021 indicates strong shareholder returns.
• Classifying dividends as capital gains may offer favorable tax implications for some investors.

Negative

• Dividends are not eligible for the 20% qualified business income deduction, potentially impacting certain shareholders.
• Future distributions may have a significant non-dividend component, creating uncertainty for investors.

SEATTLE, Jan. 18, 2022 /PRNewswire/ -- For shareholders of Weyerhaeuser Company (NYSE: WY), the 2021 dividend distributions totaling $1.18 per share on the Common Stock CUSIP 96216610 traded under the symbol WY are classified for income tax purposes as Capital Gain Distributions, which are treated as long-term capital gain. The common share dividends were paid as follows: $0.17 on March 19, 2021; $0.17 on June 18, 2021; $0.17 on September 17, 2021; $0.50 on October 19, 2021; and $0.17 on December 17, 2021.

2021 Dividend Tax Reporting Information (Form 1099-DIV)

Record Date	Payable Date	Cash Distribution per Share	Capital Gain Distribution (1)	Non-dividend Distribution
03/05/2021	03/19/2021	$0.170000	$0.170000	$0.000000
06/04/2021	06/18/2021	$0.170000	$0.170000	$0.000000
09/03/2021	09/17/2021	$0.170000	$0.170000	$0.000000
10/05/2021	10/19/2021	$0.500000	$0.500000	$0.000000
12/03/2021	12/17/2021	$0.170000	$0.170000	$0.000000
	Totals	$1.180000	$1.180000	$0.000000

Because the company's dividend distributions are characterized as capital gains, they are not Qualified Dividends eligible for the 20 percent qualified business income deduction (Section 199A deduction).

The company anticipates that the tax treatment of its 2022 distributions will have a significant non-dividend component due to the supplemental dividend that it expects to declare and pay in first quarter 2022.

Shareholders are encouraged to consult their tax advisor to determine the specific effect these distributions may have on their individual tax situation.

⁽¹⁾  For purposes of section 1061 of the Internal Revenue Code, the company is disclosing that both the One Year and Three Year amounts are $0.00/share. Section 1061 is generally applicable to direct and indirect holders of "applicable partnership interests."

ABOUT WEYERHAEUSER

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2020, we generated $7.5 billion in net sales and employed approximately 9,400 people who serve customers worldwide. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.

For more information contact: 
Analysts – Andy Taylor, 206-539-3907 
Media – Nancy Thompson, 919-861-0342

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SOURCE Weyerhaeuser Company

FAQ

What is the total dividend distribution for Weyerhaeuser in 2021?

The total dividend distribution for Weyerhaeuser in 2021 was $1.18 per share.

How are Weyerhaeuser's 2021 dividends classified for tax purposes?

Weyerhaeuser's 2021 dividends are classified as Capital Gain Distributions for tax purposes.

What impact do the 2021 dividends have on Weyerhaeuser shareholders' taxes?

The Capital Gain Distributions are not eligible for the 20% qualified business income deduction, affecting some shareholders.

When were the dividends paid by Weyerhaeuser in 2021?

The dividends were paid on March 19, June 18, September 17, October 19, and December 17, 2021.

What does Weyerhaeuser anticipate for its 2022 distributions?

Weyerhaeuser anticipates a significant non-dividend component in its 2022 distributions due to an expected supplemental dividend.