Plum Creek Timber Co. Inc. is paying a quarterly cash dividend of 42 cents per share on May 31 to shareholders of record as of May 18.

The 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 rate of 15 percent for most U.S. taxpayers.

Seattle-based Plum Creek is the largest and most geographically diverse private landowner in the nation, with about 6.6 million acres of timberlands in major timber producing regions of the United States and wood products manufacturing facilities in the Northwest.