SEATTLE (News release) -- Weyerhaeuser Company announced that its board of directors declared an interim supplemental dividend of $0.50 per share on the common stock of the company, payable in cash on October 19, 2021, to holders of record of such common stock as of the close of business on October 5, 2021.

Additionally, the board has authorized a new share repurchase program of up to $1 billion of the company's common shares. This program replaces the existing $500 million share repurchase program authorized in February 2019. Repurchases under the new program may be made through a variety of methods, including open market purchases, unsolicited or solicited privately negotiated transactions, tender offer, block trades, accelerated share repurchase transactions, or pursuant to 10b5-1 trading plans.

"In light of Weyerhaeuser's record first-half 2021 cash flow generation, the board of directors is accelerating a portion of the company's first quarter 2022 supplemental dividend and authorizing a new share repurchase program, consistent with our commitment to return capital to shareholders," said Devin W. Stockfish, president and chief executive officer. "This enables our shareholders to benefit from extraordinary market conditions in the first calendar year of our new dividend framework and also permits us to take advantage of a one-time tax planning opportunity.

"Moving forward, we expect to pay the entirety of our supplemental dividend on an annual basis in the first quarter, consistent with our dividend framework," Stockfish continued. "We are excited to accelerate this return of cash, and we look forward to paying a meaningful supplemental dividend in the first quarter of 2022."

In fourth quarter 2020, Weyerhaeuser implemented a "base plus variable supplemental" dividend framework. Under this framework, the company expects to supplement its quarterly base cash dividend, as appropriate, with a variable return of cash to achieve a targeted total annual return to shareholders of 75 to 80 percent of annual Adjusted Funds Available for Distribution (Adjusted FAD). Weyerhaeuser expects this variable return of cash will occur primarily through a supplemental cash dividend which will normally be declared and paid annually in the first quarter. The company continues to expect it will declare and pay a supplemental dividend in first quarter 2022.

Adjusted FAD, a non-GAAP measure, is defined by Weyerhaeuser as net cash from operations adjusted for capital expenditures and significant non-recurring items.