Investing in Timber Stocks

April 6, 2010 - PRLog -- For some time now financial analysts have been recommending investments in timber stocks and a knowledgeable investor who acts of this advice will increase their wealth and see their portfolio change for the better.  In a market that is facing an economic downturn timber stocks are continuing to provide an optimistic return. The solidity of timber stocks can offer an attractive investment for those wishing to expand their wealth and seek high dividends.

Before investing in timber stocks do your homework and investigate timber companies, profits and dividend values. Make sure to check out the timber company’s selling and distributing habits as well as determining if they replant after each harvest. A company, which reinvests in itself by replanting trees, is always a better investment than one that does not sustain its supply.

In order to feel comfortable with your investment you need to be well informed so compare timber stocks against other types available. A comparison of how well timber stocks are performing as an investment, as opposed to other investment opportunities will put your mind at ease.

Only then is it wise to choose a timber company to invest in. Three timber companies that have outperformed the others in its category are Plum Creek Timber, Greenwood Management and Rayonier. Each company is noted for solid performance, and offer high yields on returns.

If you are still unsure about the investment speak to an investment broker who has expertise in this area and is able to offer you information about timber stocks. This should provide you with the right information so you can expand your stock portfolio in relation to timber stocks.

It always pays to be cautious so before going overboard buy a small amount of timber stock and see how it performs. Although bear in mind this is a long term investment so you may not see a return before you decide to invest more. If you are a new to the investment game then investing small and building up your investment slowing is advisable. As you continue to research and understand timber stocks a slower progression will help build up your investing confidence.

Timber stocks are one of the best kept secrets in today’s stock market. They are a stable and have a huge potential for expanding your portfolio as well as having the added benefit of rewarding you with a very high return.