May 08, 2013. /Lesprom Network/. Plum Creek Timber Company, Inc. announced a quarterly cash dividend of $0.44 per share, an increase of $0.02 per share, or approximately 5%. The dividend is payable on May 31, 2013, to shareholders of record as of May 17, 2013, as the company said in a press release received by Lesprom Network.

“Paying a reliable and attractive dividend to our shareholders is one of the most direct and transparent means we have of delivering shareholder value,” said Rick Holley, CEO. “This increase in our dividend reflects our expectations for continued growth of long-term, sustainable cash flow from the company. In 2012 the cash generated by our manufacturing and timber resource businesses grew by a combined $44 million and we expect further growth from these businesses in 2013.”

Plum Creek’s dividend is expected to be characterized as long-term capital gain income primarily because the income generated by the sale of Plum Creek’s timber is considered long-term capital gain. As such, Plum Creek’s dividend is expected to be taxed at a maximum capital gain rate of 20% for most U.S. taxpayers.

Plum Creek is among the largest and most geographically diverse private landowners in the nation with approximately 6.3 million acres of timberlands in major timber producing regions of the United States and wood products manufacturing facilities in the Northwest.