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 April 2026, some of the highest-yielding lumber stocks were Rayonier (NYSE: RYN) at 5.1% and Weyerhaeuser at 3.4%.

What are the most undervalued lumber stocks?

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

Are lumber prices falling?

As of April 2026, lumber prices have been flat over the last year, though they remain volatile, as with most commodities.

Is there an ETF for lumber?

Yes, there are multiple ETFs, including iShares Global Timber & Forestry ETF and Invesco MSCI Global Timber ETF. Both funds own a mix of stocks with exposure to lumber, including REITs, wood production companies, and pulp and paper products.

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

By Jeremy Bowman – Updated Apr 11, 2026 at 12:02 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 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.

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

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Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
International Paper (NYSE:IP)	$17.3 billion	5.67%	Containers and Packaging
Boise Cascade (NYSE:BCC)	$3.0 billion	1.03%	Trading Companies and Distributors
West Fraser Timber (NYSE:WFG)	$5.1 billion	1.96%	Paper and Forest Products
UFP Industries (NASDAQ:UFPI)	$5.4 billion	1.49%	Building Products
Weyerhaeuser (NYSE:WY)	$18.0 billion	3.36%	Specialized REITs

Data as of Apr 26, 2026. Showing 5 of 5 tickers.

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1. International Paper

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NYSE: IP

International Paper

Today's Change

(-2.65%) $-0.89

Current Price

$32.65

Key Data Points

Market Cap

$17B

Day's Range

$32.53 - $33.59

52wk Range

$32.53 - $56.13

Volume

7.8M

Avg Vol

7.3M

Gross Margin

18.55%

Dividend Yield

5.67%

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2. Boise Cascade

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NYSE: BCC

Boise Cascade

Today's Change

(0.39%) $0.33

Current Price

$84.15

Key Data Points

Market Cap

$3.0B

Day's Range

$83.23 - $84.60

52wk Range

$65.14 - $97.67

Volume

200K

Avg Vol

422K

Gross Margin

13.98%

Dividend Yield

1.03%

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Boise Cascade (BCC +0.39%) 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. In 2025, revenue was down 5% to $6.4 billion.

Like International Paper, Boise Cascade continues to grow through acquisitions, acquiring the Parksite door shop with 22 locations in Florida in December 2024, and building materials distributor Holden Humphrey in December 2025. The company also pays a modest but consistent dividend, currently yielding 1.1%. 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

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NYSE: WFG

West Fraser Timber

Today's Change

(-0.40%) $-0.26

Current Price

$65.44

Key Data Points

Market Cap

$5.1B

Day's Range

$64.86 - $65.71

52wk Range

$57.34 - $78.55

Volume

117K

Avg Vol

212K

Gross Margin

-58.58%

Dividend Yield

1.96%

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The West Fraser Timber Company (WFG -0.40%) produces much of its wood from publicly owned forests in Canada, where it has licenses to harvest. Although close to 40% of the company's 2025 revenue came from lumber, West Fraser also makes pulp, paper, and engineered wood products, like plywood panels.

Like Boise Cascade, West Fraser has made several acquisitions and its business is closely correlated with new construction. In 2025, its revenue declined by 15% in 2025 as the company struggled with both weak demand and U.S. tariffs.

However, 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% dividend yield.

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4. UFP Industries

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NASDAQ: UFPI

UFP Industries

Today's Change

(-1.64%) $-1.58

Current Price

$94.90

Key Data Points

Market Cap

$5.4B

Day's Range

$94.89 - $97.00

52wk Range

$84.82 - $118.00

Volume

418K

Avg Vol

366K

Gross Margin

16.77%

Dividend Yield

1.49%

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UFP Industries (UFPI -1.64%) is a large, diversified lumber and wood-based materials company. It operates in three segments: construction, packaging, and retail solutions, including 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 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, and Oldcastle APG's MoistureShield decking assets that will expand its composite decking capacit. 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

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NYSE: WY

Weyerhaeuser

Today's Change

(0.12%) $0.03

Current Price

$25.03

Key Data Points

Market Cap

$18B

Day's Range

$24.96 - $25.28

52wk Range

$21.16 - $27.86

Volume

Avg Vol

5.8M

Gross Margin

14.84%

Dividend Yield

3.36%

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Lumber stocks FAQ

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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.

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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.

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