Fannie Mae

The COVID-19 pandemic and the ensuing policymaker response may have created a turning point for building materials and forest products stocks. On Monday, INK Canadian Index member CanWel Building Materials (CWX) provided a business update in which it noted that, subsequent to reporting Q1 results, it had seen steady end-market demand resulting in an 8% increase in year. While the company reduced its dividend for Q3 by 2 cents to 12 cents, that was probably better than investors had expected. Yet, the stock continues to trade with a forward dividend yield above 10%.

In today's report, we look at Interfor (IFP) which has been on the rise. Tuesday's upbeat retail sales numbers have probably helped firm up investor sentiment towards lumber stocks in general. For those investors looking to diversify into economically sensitive stocks, the forest products area may be a spot to consider. A free version of the video summary and full morning report will be available later today on INK Ultra Money.