IIPInternational Paper Company

International Paper makes containerboard and boxes — and has spent recent years closing surplus capacity.

Corrugated board is an undifferentiated commodity, and price is set by the balance of demand and capacity. The industry suffered for decades from too many machines: each producer preferred to keep them running, undercutting price. The present strategy is the opposite — closing mills even at the cost of volume, in order to restore price.

The company scaled up by buying a European producer, gaining access to markets where regulation is pushing paper packaging in place of plastic. Demand is steadier than most industrial materials: a box is needed in a downturn too. Risks: recovered paper and energy prices, integration costs and caution among consumer goods customers. The dividend is high.