In this time of volatile markets, it may be a good idea to look into some of the “unloved” sectors such as paper,chemicals,etc. In this post lets review three stocks in the paper and pulp industry. While these stocks may not grow like railroads or offer high dividend yields like financials they do provide some stability to a portfolio that is diversified with other sector stocks.

1. Company: Sappi Ltd.
Ticker: SPP
Country: South Africa
Dividend Yield : 2.95%

Sappi is a leading maker of coated fine paper and chemical cellulose (dissolving pulp) in from South Africa. Some of the top investors in the company include State Street Global Advisors,The Boston Company Asset Management,Vanguard Group, Inc and Barclays Global Investors. The stock trades in the NYSE. The PE is 7.72 and its EPS and Revenue growths are high compared to the industry.

2. Company: UPM-Kymnene Oyj
Ticker: UPMKY
Country: Finland
Dividend Yield :7.05%

UPM-Kymnene is a Finnish company that makes printing papers, specialty papers, label materials and wood products. Today the company weak earnings for the second quarter.

3. Company: Stora Enso Oyj
Ticker: SEOAY
Country: Finland
Dividend Yield :7.35%

Stora Enso is another pup and paper manufacturers from Finland. The company was formed by the merger of Stora of Sweden and Enso of Finland in 1998.Today Stora Enso is one of the world’s largest producer of pulp and paper. Total sales exceeded 11B EUR in 2007.

The Government of Finland is the largest shareholder. Today the company announced decreased profits for the second quarter of 2008.