Forest products (lumber, oriented stand board, plywood and more), pulp and paper and timberland management companies (real estate investment trusts and limited partnerships) give investors the opportunity to realize capital gains and receive income from dividends and other cash distributions. Forestry-related companies produce products that are always in demand and owning stocks in these companies lets investors benefit from a growing world economy.
These companies have cyclical businesses so their stock price follow a cyclical pattern. Often their cycles do not correspond to the cycles of other economic sectors, so forestry stocks can act to even out the performance of a stock portfolio.
Many of these companies pay safe dividends so their stocks are appropriate holdings in a long-term dividend reinvestment portfolio.
Click here for a comprehensive list of forestry-related companies.
For lists of the largest forestry-related companies see S&P Global Timber & Forestry Index Tracks 25 Forestry-Related Companies and World Timber Index (TIMBEX) Tracks Timber, Forest Products and Paper Stocks.
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