After wild swings in prices throughout the COVID-19 pandemic, lumber stocks have been steadier in recent years as lumber prices have been stable. Futures are 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.
Top lumber stocks in 2026
Let's delve into a few of the best lumber stocks to buy this year.
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| International Paper (NYSE:IP) | $17.6 billion | 5.55% | Containers and Packaging |
| Boise Cascade (NYSE:BCC) | $2.9 billion | 1.06% | Trading Companies and Distributors |
| West Fraser Timber (NYSE:WFG) | $5.1 billion | 1.97% | Paper and Forest Products |
| UFP Industries (NASDAQ:UFPI) | $5.4 billion | 1.47% | Building Products |
| Weyerhaeuser (NYSE:WY) | $17.9 billion | 3.39% | Specialized REITs |
1. International Paper
NYSE: IP
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2. Boise Cascade
NYSE: BCC
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NYSE: WFG
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4. UFP Industries
NASDAQ: UFPI
Key Data Points
NYSE: WY
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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 and 2026.
- 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.
The bottom line
The lumber industry is primarily commodity-driven, so creating a competitive advantage can be difficult. That also means lumber companies are at the mercy of market prices, which can be a tailwind during booms like the pandemic, but have been a challenge more recently.
Still, these companies provide essential materials for homebuilding, furniture, home products, and other industries, and the shortage in the U.S. housing market should eventually drive demand growth. In other words, patience in the sector should pay off, though tariffs remain a wild card.
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FAQ
Lumber stocks FAQ
About the Author
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.
