Is lumber a good investment?

Lumber can be a good investment in the right circumstances. Demand is closely correlated with the housing market, so lumber stocks tend to do better when demand for new housing is strong.

What is the largest lumber company in the U.S.?

Weyerhaeuser is the largest lumber company in the U.S. with millions of acres of timberland and a production capacity of 4.3 billion board feet annually.

What are lumber stocks with the highest dividends?

Dividend yields change frequently, but as of January 2026, some of the highest-yielding lumber stocks were PotlatchDeltic (NASDAQ: PCH) at 4.07%, Rayonier (NYSE: RYN) at 4.54%, and Weyerhaeuser at 3.14%.

What are the most undervalued lumber stocks?

One of the cheaper lumber stocks on the market is Boise Cascade, which currently trades at a P/E ratio of 13, although earnings were expected to fall.

Are lumber prices falling?

Lumber prices are down 9% over the last year, although they remain volatile, like most commodities.

5 Best Lumber Stocks in 2026 and How to Invest in Them

By Jeremy Bowman – Updated Jan 15, 2026 at 10:26 AM EST | Fact-checked by Frank Bass

Key Points

Lumber prices stabilized post-pandemic, remaining between $500-$700 per thousand board feet.
International Paper focuses on industrial packaging, enhancing operations with the DS Smith acquisition.
Investing in lumber stocks can hedge against inflation, with potential growth linked to the housing market recovery.

After wild swings in prices throughout the COVID-19 pandemic, lumber prices have been stable through the last few years, with futures hovering between $500 and $700 per thousand board feet in early 2026. Lumber is a key input in homebuilding and home improvement. With the housing market sluggish, lumber prices are still down significantly from their peak during the COVID-19 pandemic.

Loading paragraph...

Adult and child looking at wood and lumber. — Image source: Getty Images.

Loading image...

Loading paragraph...

Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
International Paper (NYSE:IP)	$22.6 billion	4.31%	Containers and Packaging
Boise Cascade (NYSE:BCC)	$2.9 billion	1.08%	Trading Companies and Distributors
West Fraser Timber (NYSE:WFG)	$5.2 billion	1.93%	Paper and Forest Products
UFP Industries (NASDAQ:UFPI)	$5.7 billion	1.74%	Building Products
Weyerhaeuser (NYSE:WY)	$17.7 billion	3.41%	Specialized REITs

Data as of Mar 3, 2026. Showing 5 of 5 tickers.

Loading ticker_table...

1. International Paper

Loading paragraph...

NYSE: IP

International Paper

Today's Change

(-1.96%) $-0.84

Current Price

$42.05

Key Data Points

Market Cap

$23B

Day's Range

$40.67 - $42.34

52wk Range

$35.56 - $56.64

Volume

4.2M

Avg Vol

6.4M

Gross Margin

18.55%

Dividend Yield

4.31%

Loading company_card...

Loading paragraph...

2. Boise Cascade

Loading paragraph...

NYSE: BCC

Boise Cascade

Today's Change

(-2.17%) $-1.75

Current Price

$78.84

Key Data Points

Market Cap

$2.9B

Day's Range

$76.98 - $80.03

52wk Range

$65.14 - $103.44

Volume

18K

Avg Vol

434K

Gross Margin

13.98%

Dividend Yield

1.08%

Loading company_card...

Boise Cascade (BCC -2.17%) has been one of the best-performing lumber stocks in recent years, as the stock more than tripled from the start of 2020 to the end of 2024, though it's since cooled off. Profits soared through 2024 as the company benefited from higher lumber prices, which are still well above pre-pandemic levels.

The manufacturer of wood products has struggled more recently with the soft housing market since the company says demand for its products is correlated with new residential construction. Through the first half of 2025, revenue was down slightly, but interest rate cuts could help give the housing market a boost.

Like International Paper, Boise Cascade continues to grow through acquisitions, acquiring the Parksite door shop with 22 locations in Florida in December 2024. The company also pays a modest but consistent dividend, currently yielding 1.3%. Since most of the company's business comes from building materials, its prospects are closely tied to the housing market, so it's a good choice if you're bullish on housing.

3. West Fraser Timber Company

Loading paragraph...

NYSE: WFG

West Fraser Timber

Today's Change

(-1.42%) $-0.94

Current Price

$65.36

Key Data Points

Market Cap

$5.2B

Day's Range

$62.95 - $65.94

52wk Range

$57.34 - $79.33

Volume

8.6K

Avg Vol

254K

Gross Margin

-58.58%

Dividend Yield

1.93%

Loading company_card...

The West Fraser Timber Company (WFG -1.42%) produces much of its wood from publicly owned forests in Canada, where it has licenses to harvest. Although more than 40% of the company's 2024 revenue came from lumber, West Fraser also makes pulp, paper, and engineered wood products, like plywood panels.

In February 2021, the lumber producer acquired Norbord, another Canadian timber company and the world's biggest producer of oriented strand board (similar to particleboard), for $3.1 billion. It followed that up with the acquisition of Spray Lake Sawmills in 2023. Like Boise Cascade, West Fraser's business is correlated with new construction, and its revenue has declined by 15% through the first three quarters of 2025.

However, its North American engineered wood products, which benefited from the Norbord acquisition, have been strong and profitable. Long-term trends in the North American housing market should benefit West Fraser's lumber business as new construction should eventually pick up.

Profits for West Fraser can be volatile, as is the case for many commodity producers. The company also currently offers a 2.1% dividend yield.

Loading paragraph...

4. UFP Industries

Loading paragraph...

NASDAQ: UFPI

UFP Industries

Today's Change

(-1.74%) $-1.76

Current Price

$99.54

Key Data Points

Market Cap

$5.7B

Day's Range

$97.58 - $100.56

52wk Range

$87.11 - $118.00

Volume

9.3K

Avg Vol

393K

Gross Margin

16.77%

Dividend Yield

1.74%

Loading company_card...

UFP Industries (UFPI -1.74%) is a large, diversified lumber and wood-based materials company. It operates in three segments: construction, packaging, and retail solutions such as decking, siding, and fencing. Like its peers, UFP has struggled with a slow housing market as sales in all three of its segments fell in the first half of 2025.

The company expects those challenges and the impact of proposed tariffs to persist, though it's focused on controlling costs and driving efficiencies. It's also on the lookout for acquisitions and recently acquired C&L Wood Products, an Alabama-based small manufacturer of pallets and mulch. C&L generated $24.8 million in sales during the 12 months ended in November 2024. The company has made moves to expand in 2025, acquiring a facility in Twin Falls, Idaho, and a 30-acre site in Lackawanna, N.Y., for a composite decking facility.

Lower commodity prices tend to lower valuations in the industry, creating opportunities for industry leaders like UFP Industries to acquire new companies.

5. Weyerhaeuser

Loading paragraph...

NYSE: WY

Weyerhaeuser

Today's Change

(0.65%) $0.16

Current Price

$24.78

Key Data Points

Market Cap

$18B

Day's Range

$24.06 - $24.87

52wk Range

$21.16 - $31.66

Volume

201K

Avg Vol

7.3M

Gross Margin

14.84%

Dividend Yield

3.41%

Loading company_card...

Loading paragraph...

Best Materials Stocks of 2026 and How to Invest in Them

These companies make the building blocks of everything we use and consume.

Stocks

Mining companies find and extract materials and minerals. Can you dig it for your portfolio?

Best Metal Stocks of 2026: Your Guide to Investing in Metal

A closer look at this subgroup of the basic materials sector and some of the best metals stocks to invest in.

4 Best Commodities ETFs to Buy in 2026

Commodity ETFs can help investors hedge inflation and speculate on prices.

Loading hub_pages...

Be careful with commodities

Investing in commodity stocks can be difficult because prices move for unpredictable reasons, including natural disasters, geopolitical tensions, and market shocks, such as the COVID-19 pandemic. The good news for lumber investors is that lumber is an essential ingredient in homebuilding and home furnishings.

Because of its omnipresence and durability, its status as a key input in those industries is unlikely to change. Structural tailwinds in the U.S. seem to be building for lumber since there's a significant lag in housing inventory. An increasing acceptance of remote work should also favor homebuilding and home improvement.

The best commodity stocks have competitive advantages, allowing the businesses to do well even in difficult economic conditions. The businesses above have all stood the test of time and have stakes in growing industries, such as e-commerce and homebuilding.

International Paper, Boise Cascade, West Fraser, UFP Industries, and Weyerhaeuser look well-positioned for the long term for investors looking to gain exposure to lumber.

Loading paragraph...

Lumber stocks FAQ

Loading faq...

About the Author

Jeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011. Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.

TMFHobo

@TMFBowman

Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends UFP Industries and West Fraser Timber. The Motley Fool recommends Boise Cascade and International Paper. The Motley Fool has a disclosure policy.

Benefits and risks of investing in lumber stocks

Lumber is a commodity, so the benefits and risks of investing in lumber stocks are similar to those of other commodities. They include the following.

Benefits:

The performance of lumber stock is correlated with the price of lumber. If lumber prices spike like they did during the pandemic, lumber stocks could soar.

Lumber stocks generally pay dividends.

Most lumber stocks have some correlation with the housing market, so a recovery in the housing market would benefit the lumber sector.

Lumber is an essential material for home construction and other purposes, so demand for these companies' products will continue over the long term.

Risks:

Commodity stocks have relatively little control over their performance since the business is closely tied to lumber prices.

The lingering weakness in the housing market has caused lumber stocks to spiral through 2025.

The paper industry has been in a long decline, weighing on lumber stocks with exposure to paper.

Tariffs have mostly had a negative impact on the industry, which has led to price volatility, pressure on homebuilders, and caused some sawmills to close.

What to look for when investing in lumber stocks

Since the lumber industry is primarily commodity-driven, creating a competitive advantage can be difficult, but there are still differences between lumber stocks. Here's what you should look for:

Since most of these stocks are dividend payers, you'll want to consider dividend yield, payout ratio, and dividend growth history.

Lumber companies have different business models. While many process and sell wood products for building materials, they differ in the markets they serve and the products they carry. You'll want to consider the markets they serve.

Acquisition history. The industry is largely mature, and acquisitions are a popular tactic for driving growth and consolidating operations.

Profit margins. While profit margins in the industry tend to be volatile due to fluctuations in lumber prices, some lumber companies are more profitable than others.

5 Best Lumber Stocks in 2026 and How to Invest in Them

Key Points

1. International Paper

Key Data Points

2. Boise Cascade

Key Data Points

3. West Fraser Timber Company

Key Data Points

4. UFP Industries

Key Data Points

5. Weyerhaeuser

Key Data Points

Best Materials Stocks of 2026 and How to Invest in Them

Stocks

Best Metal Stocks of 2026: Your Guide to Investing in Metal

4 Best Commodities ETFs to Buy in 2026

Be careful with commodities

Lumber stocks FAQ

About the Author

Stocks Mentioned

Our Guides

Premium Investing Services

Best Materials Stocks of 2026 and How to Invest in Them

Stocks

Best Metal Stocks of 2026: Your Guide to Investing in Metal

4 Best Commodities ETFs to Buy in 2026

Key Data Points

Lumber stocks FAQ

Is lumber a good investment?

What is the largest lumber company in the U.S.?

What are lumber stocks with the highest dividends?

What are the most undervalued lumber stocks?

Are lumber prices falling?

1. International Paper

2. Boise Cascade

4. UFP Industries

Benefits and risks of investing in lumber stocks

What to look for when investing in lumber stocks

Related investing topics

Be careful with commodities

FAQ

Top lumber stocks in 2026

Key Data Points

Key Data Points

Key Data Points

Key Data Points

3. West Fraser Timber Company

5. Weyerhaeuser

How to invest in lumber stocks