I'm looking for some dividend payers for my parents and have been looking hard at Plum Creek Timber (PCL). Management seems to be solid, and the stock seems to have limited downside. In fact it looks to be somewhat range bound between $35 and $40. My folks are retired, so dividend payers make sense and with a yield in excess of 4%, PCL looks like it fits the bill. From where I sit, I see a lot of upside potential if the housing market improves, but little chance of losing principle or should I say, downside. JNJ used to be range bound similarly until a recent break out. So, I'm thinking of convincing the folks to take a stake in PCL around $37.50 and then buying double the stake around $35 if they should get that shot.

Anyone out there know of some glaring problem with PCL? I know there are other Timber Reits, but PCL seems to be the best managed and likely the safest as many pension funds are loaded up on it. Maybe I'm missing something tax-wise?