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?

Based on traditional metrics, one of the more attractively priced lumber stocks is International Paper, which trades around 11 times expected 2027 earnings as of Sept. 2026.

Are lumber prices falling?

As of Sept. 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 product companies.

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

By Jeremy Bowman – Updated Sep 14, 2026 at 4:14 PM EST | Fact-checked by Frank Bass

Key Points

Lumber prices stable at $500-$700 per thousand board feet through 2026, impacting investment.
Top 2026 lumber stocks include Boise Cascade and Weyerhaeuser, key players in construction and REITs.
Investing in lumber stocks? Open a brokerage account, search, and buy through market or limit orders.

After wild swings in prices throughout the COVID-19 pandemic, lumber stocks have been steadier in recent years as prices have been stable. Futures are hovering between $500 and $700 per thousand board feet through 2026 as of September. 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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Top lumber stocks in 2026

Let's delve into a few of the best lumber stocks to buy this year. That includes wood products companies like Boise Cascade, UFP Industries, and West Fraser Timber, cardboard and packaging companies like International Paper, and Weyerhaeuser, the largest timberland REIT in the world.

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Ticker Information Table
Name and ticker	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Current price	Industry
International Paper (NYSE:IP)	$18.2 billion	$34.25	Containers and Packaging
Boise Cascade (NYSE:BCC)	$2.6 billion	$75.25	Trading Companies and Distributors
West Fraser Timber (NYSE:WFG)	$5.4 billion	$70.54	Paper and Forest Products
UFP Industries (NASDAQ:UFPI)	$4.4 billion	$81.03	Building Products
Weyerhaeuser (NYSE:WY)	$15.9 billion	$22.23	Specialized REITs

Data as of Sep 14, 2026. Showing 5 of 5 total entries.

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1. International Paper

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NYSE: IP

International Paper

Premium Feature

Moneyball Superscore

49/100

Today's Change

(-0.32%) $-0.11

Current Price

$34.25

Key Data Points

Market Cap

$18B

Day's Range

$33.94 - $34.86

52wk Range

$29.26 - $50.25

Volume

5.8M

Avg Vol

5.1M

Gross Margin

18.92%

Dividend Yield

5.38%

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2. Boise Cascade

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NYSE: BCC

Boise Cascade

Premium Feature

Moneyball Superscore

61/100

Today's Change

(-0.25%) $-0.19

Current Price

$75.25

Key Data Points

Market Cap

$2.6B

Day's Range

$74.32 - $76.03

52wk Range

$65.00 - $91.97

Volume

267.9K

Avg Vol

377.1K

Gross Margin

13.95%

Dividend Yield

1.18%

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Boise Cascade (BCC -0.25%) 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 1.2%, and it announced a 5% hike to $0.23 a share in July, showing its confidence in future growth. 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

Premium Feature

Moneyball Superscore

47/100

Today's Change

(2.17%) $1.50

Current Price

$70.54

Key Data Points

Market Cap

$5.4B

Day's Range

$68.90 - $72.11

52wk Range

$57.34 - $76.99

Volume

483.1K

Avg Vol

214.1K

Gross Margin

-343.51%

Dividend Yield

1.85%

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The West Fraser Timber Company (WFG +2.17%) 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.

The company has been transitioning production capacity to the U.S. South to take advanced of lower input costs. It closed an oriented strand board (OSB) mill in Alberta in 2026 and doubled output at a Texas sawmill.

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4. UFP Industries

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NASDAQ: UFPI

UFP Industries

Premium Feature

Moneyball Superscore

61/100

Today's Change

(0.58%) $0.47

Current Price

$81.03

Key Data Points

Market Cap

$4.4B

Day's Range

$80.13 - $81.91

52wk Range

$77.89 - $118.00

Volume

377.7K

Avg Vol

459.8K

Gross Margin

16.13%

Dividend Yield

1.78%

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UFP Industries (UFPI +0.58%) 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 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, which will expand its composite decking capacity. UFP 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

Premium Feature

Moneyball Superscore

59/100

Today's Change

(0.77%) $0.17

Current Price

$22.23

Key Data Points

Market Cap

$16B

Day's Range

$22.00 - $22.32

52wk Range

$21.16 - $27.75

Volume

Avg Vol

5.4M

Gross Margin

14.51%

Dividend Yield

3.81%

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Weyerhaeuser (WY +0.77%) has a different business model from the other companies on the list. It operates as a real estate investment trust (REIT), specializing in timberlands.

It now has 12.4 million acres in the U.S., and manages another 14 million in Canada. Weyerhaeuser is significantly bigger than any other timberland REIT, and the company makes money by selling timber grown on its property. It also owns significant milling and production operations.

Because of its direct exposure to lumber prices, Weyerhaeuser benefits when lumber prices go up. However, the company has also struggled with a weak housing market, and it has accelerated its share repurchases to take advantage of the lull in the industry.

Both revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were down in 2025 as the company noted a very challenging market backdrop, but it said it was well-positioned to benefit from longer-term demand fundamentals.

In Sept. 2026, Weyerhaeuser announced its first expansion in geothermal energy, leasing 145,000 acres to Hexagon Energy to develop geothermal energy. The project is one of several that Weyerhaeuser has done in renewable energy

How to invest in lumber stocks

If you want to buy a lumber stock, here's how to do it. Just follow these steps:

Open your brokerage app: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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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 stocks is correlated with the price of lumber. If lumber prices spike as 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, leading to price volatility, pressure on homebuilders, and the closure of some sawmills.

Methodology: How these stocks were chosen

The stocks above offer a good sampling of the lumber stocks available to investors. While lumber is a basic material and a major commodity, there are not many U.S.-listed publicly traded companies in lumber and the related paper and pulp industry.

These stocks give investors an opportunity to get exposure to paper companies, a range of wood product companies, and even a REIT.

Lumber stocks are likely to rise and fall with lumber prices, especially for vertically integrated producers and others that own timberland.

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.

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4 Best Commodities ETFs to Buy in 2026

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

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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.

TMFHobo

@TMFBowman

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

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

Key Points

Top lumber stocks in 2026

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

How to invest in lumber stocks

Benefits and risks of investing in lumber stocks

Methodology: How these stocks were chosen

The bottom line

7 Best Materials Stocks for 2026 and How to Invest

Stocks

5 Best Metals Stocks for 2026 and How to Invest

4 Best Commodities ETFs to Buy in 2026

Lumber stocks FAQ

Is lumber a good investment?

Is lumber a good investment?

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

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

What are lumber stocks with the highest dividends?

What are lumber stocks with the highest dividends?

What are the most undervalued lumber stocks?

What are the most undervalued lumber stocks?

Are lumber prices falling?

Are lumber prices falling?

Is there an ETF for lumber?

Is there an ETF for lumber?

About the Author

Read Next

Stocks Mentioned

Motley Fool Stock Advisor’s Latest Pick

Premium Investing Services

Lumber stocks FAQ

Is lumber a good investment?

Is lumber a good investment?

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

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

What are lumber stocks with the highest dividends?

What are lumber stocks with the highest dividends?

What are the most undervalued lumber stocks?

What are the most undervalued lumber stocks?

Are lumber prices falling?

Are lumber prices falling?

Is there an ETF for lumber?

Is there an ETF for lumber?

7 Best Materials Stocks for 2026 and How to Invest

Stocks

5 Best Metals Stocks for 2026 and How to Invest

4 Best Commodities ETFs to Buy in 2026

1. International Paper

2. Boise Cascade

4. UFP Industries

Top lumber stocks in 2026

Key Data Points

Benefits and risks of investing in lumber stocks

Methodology: How these stocks were chosen

The bottom line

Related investing topics

3. West Fraser Timber Company

5. Weyerhaeuser

How to invest in lumber stocks

Key Data Points

Key Data Points

Key Data Points

Key Data Points