Today’s purchase: Whirlpool Corporation

If you read yesterday’s post, you know I’m making a real effort to add to my portfolio through dividends or purchases each and every day the market is open this year (minus the first 20 or so days of the month).

Yeah, my resolution was a little slow to start. But, I’m happy to say two days into making a legitimate effort, I’m 2-for-2. I grew my Dividend Farm a bit thanks to yesterday’s dividend (thanks for the $0.46 payment, Medtronic) and, since I wasn’t fortunate enough to earn a divi today, went ahead and made a purchase to keep my pathetically short streak alive.

That purchase, as I’m sure you all picked up from the title of this post, was Whirlpool Corporation. I scooped up a share for $172.30, a decent price considering it’s sitting some 15% or so off its 52-week high of $202.99. The purchases started a new position for me.

Whirlpool is the 46th company in my portfolio that pays quarterly dividends in March, June, September and December. Combined, I can now expect $168.15 annually from the basket of stocks with that payment schedule.

Here’s a closer look at Whirlpool and why I made the purchase …

Whirlpool

Whirlpool has been on my radar for awhile. It’s been beaten down a bit lately (missing earnings estimates each of the last five quarters hasn’t helped). That said, I’ve been patiently waiting for a reason to pull the trigger.

That reason feel into my lap Monday night, when Trump said he’d hit foreign made solar panels and washing machines with 20-30% tariffs. Whirlpool, being an American company, will be immune to the tariffs, automatically making it more competitive in the marketplace. Couple that with the fact the company is trading closer to its 52-week low than its 52-week high and you have a recipe for a rally.

I also like the fact that, despite the string of earnings misses, Whirlpool has grown its EPS by 20% (last quarter verses the same quarter from the previous year). Sign of good times? I hope so.

The company’s profit margin isn’t all that high (5.09%), but its debt/capital ratio isn’t through the roof, either (54%). It also has a low P/E ratio (15.71) and price/book (2.56).

On top of what looks like a good value at current prices, Whirlpool has a nice dividend to make owning shares of the company even sweeter. Its $4.40 annualized payment represents a solid 2.64% yield. Toss in its low payout ratio (41.55%) and annualized divi growth of 13% over the course of the last three years – oh, and seven straight years of dividend growth – and you have a nice little DGI stock.

Anybody else own Whirlpool? Anyone thinking of starting a position? If not, what other stocks are you buying these days?

March on!

2 Responses to “Today’s purchase: Whirlpool Corporation

  • interesting purchase ,not a common one seen in dividend world.Good luck with it.

    • Thanks! I haven’t seen to many people talking about it, either. I think good things are ahead, but who knows? I’m looking forward to finding out, though.

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