Weyerhaeuser forecast further tough times for the US housing market as the homebuilder, and second-ranked owner of US timberland, unveiled a tripling in its quarterly dividend.

The forestry group's chief executive, Dan Fulton, said it did "not anticipate significant improvement" in America's housing market next year.

"There is significant near-term uncertainty," he added.

The comments follow a wobble in the recovery in American housing starts, which tumbled by 11.7% in October, following a three-month winning streak.

And they came as Weyerhaeuser forecast quarterly dividends of $0.15 a share next year, compared with a previous quarterly dividend rate of $0.05 a share, reflecting the group's switch to becoming a real estate investment trust, or Reit.

Weyerhaeuser paid a special dividend of $5.6bn, equivalent to $26.46 per investor, as part of the conversion to being a Reit, a tax efficient property trust, which is obliged to pay a high level of earnings out as dividends.

'Positive' outlook 

The company said its dividends targets for 2011 represented "significantly all" of its forecast funds available for distribution for the year.

The company is targeting a lower payout ratio, of some 75%, Weyerhaeuser said, blaming the high ratio of next year's payout reflected the weak immediate outlook for the housing market.

The longer term market outlook was "positive", supported by improved economic conditions.

The dividend unveiled on Monday was, besides being attractive, "one that is sustainable, and that we expect to grow over time", Mr Fulton said.

Weyerhaeuser shares finished 0.8% higher at 17.90 in New York.