From staff reports:

On July 11, Federal Way-based Weyerhaeuser Company announced it will pay $5.6 billion to shareholders in a special dividend.

Weyerhaeuser is one of the world’s largest lumber and wood products companies. The company is trying to become a real estate investment trust (REIT), a tax designation that reduces corporate income taxes. Any REIT will “receive special tax considerations and typically offer investors high yields, as well as a highly liquid method of investing in real estate,” according to Investopedia.com.

A dividend is a portion of corporate profits paid to shareholders, and a special dividend is an additional payment. The company had about 211.6 million shares outstanding as of April 30, according to an Associated Press report.

“The REIT structure best supports our strategic direction and positions Weyerhaeuser for future growth,” said Dan Fulton, president and chief executive officer, in a news release. “The tax efficiency of the REIT structure also will enable us to increase our timberland earnings and make higher distributions to our shareholders.”