Whirlpool's High Dividend Yield Is Too Good to Pass Up

Core Viewpoint - Whirlpool is presenting a buying opportunity for its dividend, trading at a low valuation with a robust outlook for stock price reversal in 2025 [1][2] Financial Performance - The stock is currently trading at a P/E ratio of 9x, which is over 40% below its 10-year average, indicating a low valuation relative to earnings growth expectations for 2025 [2] - The company reported a negative cash flow in FQ2, primarily due to debt repayments, but this was less than the previous year, leaving long-term liabilities low and manageable [4] Dividend Information - Whirlpool offers a dividend yield of 6.79% with an annual dividend of $7.00 and a 3-year annualized dividend growth of 13.01% [3] - The dividend payout ratio is currently at 96.42%, but is expected to be manageable at 60% of the 2024 EPS forecast and 55% of the 2025 EPS forecast [3] Market Sentiment - Analysts and institutional activity suggest a price floor for WHR shares between $100 and $105, with bullish activity noted in Q1 and Q3 of 2024 [5] - The stock price reached its bottom in 2024 but has not yet signaled a complete reversal, with critical support levels needing to be tested [6] Future Outlook - The long-term forecast anticipates a total price reversal by 2025, driven by falling interest rates that could stimulate demand for new homes and appliances [7]