The World Timber index (TIMBEX) by Dow Jones Indexes includes the 15 largest (market cap exceeds $500 million) liquid forestry-related stocks that are engaged in producing wood products, pulp and paper products or forest land ownership (REITs). TIMBEX is market-cap weighted with no one component exceeding ten percent.
The index is useful to investors because the components are established companies with capital gains potential. And many of them pay safe increasing dividends.
But the lumber and pulp and paper industries are cyclical and so are the stock prices of forestry-related companies. So before you buy any of these stocks, be sure to study their price charts. Always buy at the beginning of price upside and avoid buying at the cyclical tops. And avoid buying on the downside of the price cycle.
Click here to see a table of the TIMBEX components.
For more information about the TIMBEX see TIMBEX current components by weightings (.pdf file) and TIMBEX brochure (.pdf file).
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