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UPS vs. Whirlpool: 2 High-Yield Stocks That Crashed, but Only one Is a Buy
The Motley Foolยท2025-08-17 08:55

Group 1: Company Overview - UPS and Whirlpool are currently experiencing significant declines in their stock prices, with both down over 60% from their all-time highs [2] - Both companies have a history of paying and increasing dividends, with their yields now exceeding 7% due to share price slumps [4] Group 2: Dividend Analysis - UPS is committed to maintaining a stable and growing dividend, with expected payouts of at least $5.5 billion this year, likely exceeding its free cash flow [5] - Whirlpool has cut its annual dividend from $7 to $3.50 per share, resulting in a more sustainable yield of 4% compared to UPS's 7.5% [6] Group 3: Impact of Tariffs - UPS faces risks from tariffs that may lead to decreased shipping volumes and negatively impact consumer spending, especially during the holiday season [8] - Conversely, Whirlpool may benefit from tariffs on foreign competitors, as it manufactures over 80% of its products in the U.S., giving it a pricing advantage [9] Group 4: Investment Outlook - Despite UPS's higher yield, its future prospects appear dim due to external economic factors, while Whirlpool offers a decent yield and compelling valuation even after its dividend cut [10]