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Whirlpool (WHR) Cheers Investors With 25% Dividend Hike
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Whirlpool Corporation (WHR - Free Report) is giving investors a heads up by enhancing shareholder returns. The company announced its 10th straight quarterly dividend hike. It will now pay $1.75 per share, suggesting a 25% rise from the prior dividend rate of $1.40. The increased dividend will be paid out on Mar 15 to shareholders of record as of Feb 25.
This brings the company’s annualized dividend to $5.60 per share. Notably, WHR has a 5-year annualized dividend growth rate of 5.6%, reflecting dividend increases for five consecutive years. Based on the company’s share price of $196.62 on Feb 14, it currently has a dividend yield of 2.9%. The company’s current dividend payout ratio is 21%.
WHR approved an additional $2 billion in share repurchases under the existing share repurchase program. This brings the remaining availability to $1.5 billion under the program as of Dec 31, 2021. It reflects Whirlpool’s solid cash position, which is used to return value to shareholders (through higher dividends and regular buybacks) and reinvest in the business. In 2021, the company returned $1.4 billion to shareholders, including share repurchases of $1 billion.
The move comes after its fourth-quarter 2021 results, wherein earnings beat the Zacks Consensus Estimate, marking the 14th straight earnings beat. Results gained from strong demand and efficient cost-based pricing efforts. The bottom line was supported by cost-based pricing actions.
The company’s cost takeout actions include curtailing structural and discretionary costs, capturing raw material deflation opportunities, effectively managing working capital, and syncing supply-chain and labor levels with demand. Price/mix is expected to aid the EBIT margin by 600 basis points (bps) in 2022, led by the execution of the pricing actions announced in 2021, the full implementation of cost-based price increases in the United States, Europe and India by second-quarter 2022, and continued positive trends in the mix due to consumers staying at home as well as product launches.
Driven by these factors, management provided robust 2022 guidance on strong consumer demand trends. For 2022, Whirlpool envisions net sales growth of 5-6%, which is in line with its long-term value-creation goals. As part of its long-term value creation goals, the company earlier anticipated annual organic net sales (excluding currency) growth of 5-6%.
The company expects to deliver EBIT margins of 10.5% in 2022. On a GAAP and ongoing basis, the company expects earnings per share of $27.00-$29.00 for 2022. Driven by the ongoing inflationary pressures and the implementation of cost-based pricing by the second quarter, the company expects to deliver 40-45% of projected earnings in the first half of 2022.
Consequently, shares of this Zacks Rank #2 (Buy) company have advanced 2.8% in the past year against the industry’s and the Consumer Discretionary sector’s declines of 72% and 22.6%, respectively. Topping it, the stock is hovering close to its new 52-week high of $198.95.
Image Source: Zacks Investment Research
Summing Up
We believe that sound fundamentals like growing customer demand, as well as stringent cost-cutting measures, demonstrate the company’s operational strength and high-quality portfolio. It draws further investor attention through regular dividend payouts and commitment to enhance shareholder returns. A VGM Score of A and a long-term earnings growth rate of 8.5% further reflect its inherent strength.
Other Stocks to Consider
Some other top-ranked stocks from the Consumer Discretionary sector are Delta Apparel , Oxford Industries (OXM - Free Report) and World Wrestling Entertainment .
Oxford Industries currently sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 96.7%, on average. Shares of OXM have gained 15.1% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Oxford Industries’ current financial year’s sales and earnings suggests growth of 51.9% and 523.8%, respectively, from the year-ago period's reported numbers.
World Wrestling presently carries a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 75.5%, on average. Shares of WWE have rallied 21.6% in a year.
The Zacks Consensus Estimate for World Wrestling’s current financial-year sales and earnings suggests growth of 16.5% and 11.3% from the year-ago period’s reported numbers, respectively.
Delta Apparel currently carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 95.5% on average. The DLA stock has gained 9.4% in the past year.
The Zacks Consensus Estimate for Delta Apparel's current financial year’s sales and earnings per share suggests growth of 11.9% and 10.1%, respectively, from the year-ago period's reported numbers.
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Whirlpool (WHR) Cheers Investors With 25% Dividend Hike
Whirlpool Corporation (WHR - Free Report) is giving investors a heads up by enhancing shareholder returns. The company announced its 10th straight quarterly dividend hike. It will now pay $1.75 per share, suggesting a 25% rise from the prior dividend rate of $1.40. The increased dividend will be paid out on Mar 15 to shareholders of record as of Feb 25.
This brings the company’s annualized dividend to $5.60 per share. Notably, WHR has a 5-year annualized dividend growth rate of 5.6%, reflecting dividend increases for five consecutive years. Based on the company’s share price of $196.62 on Feb 14, it currently has a dividend yield of 2.9%. The company’s current dividend payout ratio is 21%.
WHR approved an additional $2 billion in share repurchases under the existing share repurchase program. This brings the remaining availability to $1.5 billion under the program as of Dec 31, 2021. It reflects Whirlpool’s solid cash position, which is used to return value to shareholders (through higher dividends and regular buybacks) and reinvest in the business. In 2021, the company returned $1.4 billion to shareholders, including share repurchases of $1 billion.
The move comes after its fourth-quarter 2021 results, wherein earnings beat the Zacks Consensus Estimate, marking the 14th straight earnings beat. Results gained from strong demand and efficient cost-based pricing efforts. The bottom line was supported by cost-based pricing actions.
The company’s cost takeout actions include curtailing structural and discretionary costs, capturing raw material deflation opportunities, effectively managing working capital, and syncing supply-chain and labor levels with demand. Price/mix is expected to aid the EBIT margin by 600 basis points (bps) in 2022, led by the execution of the pricing actions announced in 2021, the full implementation of cost-based price increases in the United States, Europe and India by second-quarter 2022, and continued positive trends in the mix due to consumers staying at home as well as product launches.
Driven by these factors, management provided robust 2022 guidance on strong consumer demand trends. For 2022, Whirlpool envisions net sales growth of 5-6%, which is in line with its long-term value-creation goals. As part of its long-term value creation goals, the company earlier anticipated annual organic net sales (excluding currency) growth of 5-6%.
The company expects to deliver EBIT margins of 10.5% in 2022. On a GAAP and ongoing basis, the company expects earnings per share of $27.00-$29.00 for 2022. Driven by the ongoing inflationary pressures and the implementation of cost-based pricing by the second quarter, the company expects to deliver 40-45% of projected earnings in the first half of 2022.
Consequently, shares of this Zacks Rank #2 (Buy) company have advanced 2.8% in the past year against the industry’s and the Consumer Discretionary sector’s declines of 72% and 22.6%, respectively. Topping it, the stock is hovering close to its new 52-week high of $198.95.
Summing Up
We believe that sound fundamentals like growing customer demand, as well as stringent cost-cutting measures, demonstrate the company’s operational strength and high-quality portfolio. It draws further investor attention through regular dividend payouts and commitment to enhance shareholder returns. A VGM Score of A and a long-term earnings growth rate of 8.5% further reflect its inherent strength.
Other Stocks to Consider
Some other top-ranked stocks from the Consumer Discretionary sector are Delta Apparel , Oxford Industries (OXM - Free Report) and World Wrestling Entertainment .
Oxford Industries currently sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 96.7%, on average. Shares of OXM have gained 15.1% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Oxford Industries’ current financial year’s sales and earnings suggests growth of 51.9% and 523.8%, respectively, from the year-ago period's reported numbers.
World Wrestling presently carries a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 75.5%, on average. Shares of WWE have rallied 21.6% in a year.
The Zacks Consensus Estimate for World Wrestling’s current financial-year sales and earnings suggests growth of 16.5% and 11.3% from the year-ago period’s reported numbers, respectively.
Delta Apparel currently carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 95.5% on average. The DLA stock has gained 9.4% in the past year.
The Zacks Consensus Estimate for Delta Apparel's current financial year’s sales and earnings per share suggests growth of 11.9% and 10.1%, respectively, from the year-ago period's reported numbers.