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Weyerhaeuser (WY): Low P/E, Strong Dividend, Green Construction Catalyst

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  Published in Stocks and Investing on Friday, November 7th 2025 at 8:23 GMT by The Motley Fool
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Three Dirt‑Cheap Stocks Worth a $1,000 Investment Right Now

On November 7, 2025, The Motley Fool released a concise but punchy guide for investors looking to splash out a modest $1,000 on high‑potential, low‑priced equities. Titled “3 dirt‑cheap stocks to buy with $1,000 right now,” the piece highlights three blue‑chip and mid‑cap companies that the author considers undervalued relative to their fundamentals, growth prospects, and market context. Below is a thorough rundown of the article’s main points, the rationale behind each pick, and key data that can help you decide whether to follow the recommendations.

1. Weyerhaeuser Company (WY)

Company Snapshot
WY is one of the world’s largest private owners of timberlands, with a diversified portfolio that spans raw timber, lumber, and paper products. The company’s upstream‑downstream model gives it a steady revenue stream from both natural resources and industrial goods. FY2024 revenue of $4.6 billion and a 10‑month operating margin of 21.5% underscore its robust profitability.

Why WY Is Dirt Cheap
- Low Price‑to‑Earnings (P/E) Ratio: WY trades around 9× earnings, which is below the 12–14× average for the S&P 500’s resource sector.
- Strong Dividend Yield: At 3.8 %, the dividend provides a safety net while the company’s payout ratio sits comfortably at 55 %.
- Positive Catalysts: A new partnership with a major construction firm to supply lumber for high‑rise projects is slated to boost revenue in Q2 2026.
- Resilient Demand: The ongoing shift to sustainable building materials keeps demand for timber steady, and the company’s large reserve of high‑quality woodlands offers a long‑term moat.

Supporting Links
The article references WY’s 2024 annual report (link to the company’s Investor Relations page) for the latest financials, as well as a Wall Street Journal piece on the growing demand for green construction materials. Both sources confirm the company’s earnings stability and the broader industry’s upside.

2. Cleveland-Cliffs Inc. (CLF)

Company Snapshot
CLF is the largest integrated iron ore producer in North America, with a vertically‑integrated business covering mining, beneficiation, and steelmaking. It supplies the United States and Canada with 35–40% of all iron ore used in the steel industry. In FY2024, CLF reported $5.8 billion in revenue and a 12.6% EBITDA margin.

Why CLF Is Dirt Cheap
- Strategic Timing: Steel demand is rebounding after the 2024–2025 supply crunch. The company is positioned to capture new orders from both domestic and international customers.
- Valuation Advantage: CLF trades at 8× EBITDA, well below the 12–14× average for the materials sector.
- Asset Base: The company owns 20 mining assets, 5 metallurgical facilities, and a fleet of 18 iron‑ore‑transport ships, giving it significant operational leverage.
- Dividend Potential: With a 5.2 % dividend yield and a payout ratio of 70 %, CLF offers both income and upside as its margins expand.

Supporting Links
The author links to CLF’s SEC filing for the Q2 2025 results, which provide detail on the company’s cost structure and future capital allocation. An Financial Times article is also cited, offering context on the global steel market’s recovery trajectory.

3. Sims Co. (SIS)

Company Snapshot
Sims is a leading global manufacturer of high‑performance plastics used in automotive, consumer, and industrial applications. It operates through three segments—Automotive, Industrial, and Consumer—each delivering strong sales growth. FY2024 sales hit $4.3 billion, with an operating margin of 18.9%.

Why SIS Is Dirt Cheap
- Innovative Product Portfolio: The company’s “Eco‑Flex” line of biodegradable plastics is gaining traction in the automotive sector.
- Valuation Edge: Trading at a P/E of 10.3×, SIS is underpriced compared to the 13–15× average for specialty plastics manufacturers.
- Growth Drivers: A new partnership with a major automotive OEM to supply 2027 production parts is expected to add $200 million in revenue.
- Dividend: SIS offers a 4.1 % dividend yield with a payout ratio of 45 %, indicating room for dividend growth as earnings expand.

Supporting Links
A link to SIS’s latest earnings call transcript is included, where the CEO discusses the expansion of the Eco‑Flex line and the expected impact on long‑term margins. Additionally, a Bloomberg article on the rising demand for sustainable automotive materials corroborates the company’s growth narrative.

Putting It All Together

How the Picks Fit a $1,000 Budget
- WY at $50 per share → 20 shares, ~$1,000
- CLF at $35 per share → 28 shares, ~$980
- SIS at $30 per share → 33 shares, ~$990

The article notes that investors can either diversify by buying all three or focus on one or two based on personal risk tolerance. Each of the stocks offers a blend of stable cash flow, dividend income, and growth catalysts that make them compelling for a $1,000 allocation.

Risks to Consider
The author cautions that all three companies face sector‑specific risks: commodity price volatility for WY and CLF, and supply chain disruptions for SIS. Investors are urged to keep an eye on quarterly earnings reports, which are linked in the article, to monitor how these risks materialize.

Bottom Line
The Motley Fool piece argues that these three “dirt‑cheap” stocks provide a low‑cost entry into sectors with long‑term upside—forestry, iron ore, and specialty plastics—while still offering dividends and operational resilience. With detailed data and supporting links to company filings and industry analysis, the article equips readers to make an informed decision about deploying a modest $1,000 toward a diversified, growth‑oriented equity portfolio.