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?
For further details see:
Is the Housing Market Flashing Warning Signs for Weyerhaeuser?