Stora Enso and UPM-Kymmene Are Cyclical Dividend-Paying Stocks

Stora Enso (SEO) and UPM-Kymmene (UPM), two well-known Finnish paper and wood products companies, exhibit very similar cyclical price patterns. Currently both stocks are peaking and headed to the downside. The best time to buy these cyclical stocks is when their prices turn to the upside of the next price cycle.

Both stocks pay safe dividends with good yields. Currently SEO pays $0.40 per year for a 2.60 percent yield. UPM pays $0.77 for a 3.10 percent yield. Both dividend yields will increase as their stock prices decline making these stocks even more attractive.

The SEO chart shows four major and many brief price cycles since October 2002. The major cycles made higher peaks and higher lows to form an upside price trend.

Like the SEO chart UPM shows four major and many brief price cycles that are included in an upside price channel with higher peaks and higher lows.

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Posted December 5, 2006.