WHR Stock: Robust Dividend-Payer Selling for Pennies on the Dollar
May 20, 2025
A Rare Gem of a Contrarian Opportunity?
Appliances aren’t really the hottest thing in town these days. Most investors aren’t waking up excited to buy a dishwasher or dryer. But sometimes, the most boring industries offer the most stable and lucrative returns, especially when income is the name of the game.
Take a look at Whirlpool Corp (NYSE:WHR)—a global household name that’s been quietly rewarding patient investors for decades. If an investor’s hunting for a high, reliable income play, WHR stock might be quite the contrarian gem.
Just looking at the performance of WHR stock and nothing else, it almost seems like the worst-case scenario is plaguing the company. Since the beginning of 2025, WHR stock has dropped close to 28%. It’s trading below its 50-day moving average (MA) and 200-day MA, suggesting that investors are anything but excited about this stock.
However, I can’t stress this enough: income investors who can be patient could generate solid income and robust capital appreciation with this pick.
What Does Whirlpool Do?
Headquartered in Benton Harbor, Michigan, Whirlpool is hands down one of the biggest, most well-known home appliance companies in the world. It operates in North America, Latin America, Asia, and other international markets.
Whirlpool’s products include refrigerators, freezers, washing machines, dryers, ovens, stoves, and dishwashers, mixers and other small kitchen appliances, and appliance parts and accessories such as water filters and cleaning products.
The company offers its products under several brands, including “Whirlpool,” “Maytag,” “KitchenAid,” “JennAir,” “Amana,” and “InSinkErator.”
Whirlpool sell its products through major retailers, homebuilders, and distributors and also directly to customers. (Source: “Profile,” Yahoo! Finance, last accessed May 12, 2025.)
WHR Stock: A Monster Dividend Yield Hiding in Plain Sight
Here’s what really makes WHR stock worth a look: the dividend yield is currently hovering around 8.75%, paying $7.00 per share on annual basis.
Let that sink in.
This is a globally recognized blue-chip company, with products in nearly every household in America and deep brand recognition. And it’s yielding more than many junk bonds.
Now, I know what you might be thinking: is that dividend safe?
While Whirlpool has seen earnings volatility, it has a long history of paying and growing its dividend. Management has made it clear that returning cash to shareholders is a top priority. Even during challenging years, those who owned WHR stock got paid.
It’s also of note that Wall Street analysts are projecting that Whirlpool will report earnings per share (EPS) of $9.00 in 2025 and $10.66 in 2026. (Source: “Analysis,” Yahoo! Finance, last accessed May 12, 2025.)
Assuming these end up being the final EPS figures and Wall Street analysts are correct in their predictions, then the forward payout ratio would be between 65% and 80%. So, the dividend would not only be covered but there could also be some room to grow if the business improves.
Chart Courtesy of StockCharts.com
A Margin of Safety Rarely Seen in Blue-Chips
While the dividend is a deal for income investors, the stock’s valuations shouldn’t be ignored either. WHR stock is selling for pennies on the dollar—something you see very rarely happening with this kind of stock.
At the time of writing, WHR stock trades at a price-to-sales (P/S) ratio of 0.28. Essentially, this ratio is saying that investors are valuing each $1.00 of sales at Whirlpool at just $0.28. (Source: “Valuation,” Whirlpool Corp, last accessed May 12, 2025.)
This is also significantly below its five-year average of $0.42.
If you look at other valuation measures, they suggest the same: a deep discount. Also, it shouldn’t be forgotten that WHR isn’t a penny stock; Whirlpool is global leader that sells must-have products in many markets.
Will the current valuations of WHR stock remain the same?
This low valuation opportunity might be running out. Don’t forget that markets are forward-looking, and once Whirlpool’s financial performance improves and overall economic conditions get better, investors could be rushing to own WHR stock.
The Lowdown on WHR Stock
Let’s be honest: WHR stock hasn’t exactly been on fire lately. After peaking during the 2020 health crisis, driven by the home improvement boom, Whirlpool shares have dropped. And they didn’t start on solid ground this year either.
But here’s the thing: Whirlpool is still operating and business is strong. The company has been restructuring, cutting costs, and streamlining itself. Even conservative Wall Street analysts think Whirlpool will remain profitable through this period.
For income investors, WHR stock is presenting a great—and very rare—opportunity. There’s a solid dividend here and the potential for massive upside. Looking at analysts’ WHR stock price target one year out, you’ll see that the average is currently around $99.43, with a high target of $143.45.
All of this is also good news for the 674 institution that own 86.84% of all outstanding shares in Whirlpool. The three biggest holders of WHR stock are BlackRock Inc, The Vanguard Group, and PRIMECAP Management Company. (Source: “Holders,” Yahoo! Finance, last accessed May 12, 2025.)
