Whirlpool Hikes Dividend - Analyst Blog
2013年4月17日 - 7:20PM
Zacks
Whirlpool
Corporation (WHR), the leading manufacturer and supplier
of home appliances is a promising option for investors seeking both
growth and income. This Zacks Rank #3 (Hold) company yesterday
announced its decision of a dividend hike, following which the
shares rose 3.2% to close at $116.78.
Benton Harbor, Mich.-based
Whirlpool raised its quarterly dividend by 25% to 62.5 cents from
50 cents a share. The increased dividend, which is the
121st successive quarterly payout, will be paid on Jun
15, 2013, to stockholders of record as of May 17, 2013.
Whirlpool is known for its
shareholder-friendly moves. Since 1983, the company has increased
its dividend from 22.5 cents to 62.5 cents. The dividend yield
based on the new payout and the last closing market price is
approximately 2.1%. We believe that its continuous dividend
payments and increments reflect the growth potential of its
earnings and cash flow generation capabilities.
Whirlpool’s strong balance sheet
and cash flows provide financial flexibility to the company for
taking shareholder-friendly initiatives, R&D investments and
global business expansions. During 2012, it shelled out $155
million on cash dividends. Cash and cash equivalents stood at
$1,168 million at the end of the fiscal, while it generated $696
million of cash from operational activities. We remain encouraged
by Whirlpool’s strong cash position and its ability to service
long-term debts.
Other companies, which recently
increased dividend, include The TJX Companies Inc.
(TJX), by 26.0% to 14.5 cents, Rockwell Automation
Inc. (ROK) by 11.0% to 52 cents, and
The Bank of New York Mellon Corporation (BK) by
15% to 15 cents.
We believe that dividend hikes not
only enhance shareholder’s return, but raise the market value of
the stock as well. Through dividend raises, companies persuade
investors to either buy or hold the scrip instead of selling them.
Looking ahead, Whirlpool remains confident of its growth potential,
suggesting enhanced value for shareholders via dividend payout.
BANK OF NY MELL (BK): Free Stock Analysis Report
ROCKWELL AUTOMT (ROK): Free Stock Analysis Report
TJX COS INC NEW (TJX): Free Stock Analysis Report
WHIRLPOOL CORP (WHR): Free Stock Analysis Report
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