WestRock is one of the largest cardboard packaging makers in the world and a low-tech play on the burgeoning e-commerce world.
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Most everything from Amazon (AMZN) and the websites at Walmart (WMT), Costco (COST), Nike (NKE) — and every other dot com — is shipped in a cardboard container. The stock pays a dividend yield of 4.51% and is trading at $41 -- well off its January 2018 high of $71.
Weyerhaeuser is one of the world’s largest owners of timberlands — roughly 12 million acres in the United States with additional licenses to manage large swaths of timberlands in Canada.
Guess what the booming U.S. housing and cardboard box markets are in strong demand of — timber. The stock sports a current dividend yield of 4.64%, trades at around $29 and traded as high as $38 in early 2018.
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Not only are both companies showing true technical strength, just coming out of multi-month bases and they both also gave upbeat Q3 guidance that lifted the stocks — always a good sign of professional money getting involved. Sometimes it just pays to follow the money and money is rotating into cyclical stocks.
When investors can garner a dividend that is 2.5 times more than that of the S&P 500, trading at a steep discount to its historical highs and is seeing business conditions improve, then sometimes generating attractive yield and capital gains in the market is as simple as investing in wood and cardboard.
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