Is the Housing Market Flashing Warning Signs for Weyerhaeuser?
Since home prices bottomed in 2012, probably the biggest economic disappointment has been the lack of homebuilding. Historically, housing has led the economy out of a recession, but the post-bubble recovery has been characterized by a lack of homebuilding.
Last year, lumber prices moved up markedly as supply chain issues and homebuilding demand rebounded. Rising lumber prices were a big reason Weyerhaeuser (NYSE: WY) was able to pay income investors a handsome dividend yield in 2021.
It looks like lumber prices are falling back toward normal levels. Does this mean the Weyerhaeuser dividend is at risk?
Source Fool.com
