There has been a lot of coverage of ecommerce this year. Most of it has been focused on two things—Amazon’s meteoric rise, and how it is forcing conventional brick and mortar retailers to close shop. However, the best way to play ecommerce may not be to buy into such a retailer. Rather, Barron’s contends, one should buy International Paper. They are the world’s leading supplier of containerboard and corrugated packaging, and stand to benefit disproportionately from the rise of ecommerce, which uses a lot of packaging. The company has been steadily raising its dividend, and the outlook appears very healthy.
FINSUM: This looks like a high margin and growing business. It could be a great way to play ecommerce.