Why a Recent Quote From Home Depot's Management Could Mean Good News for This High-Yield Stock
's (NYSE: WHR) 7.2% dividend yield is highly enticing. It's undoubtedly a company that will do well in a lower interest rate environment, especially since the housing market should improve, encouraging discretionary spending on household appliances. Still, there's always a reason stocks carry such yields, and it often occurs in stocks about to cut their dividends.
While that may happen, something Home Depot's (NYSE: HD) management recently said supports the idea that Whirlpool might muddle through the current period. Here's the lowdown.
There are no prizes for guessing that the principal concern over Whirlpool is the length and severity of the housing market slowdown, something guided by the interest rate cycle and housing market conditions. The bulls will argue that lower interest rates are always good for the housing market because they lower mortgage payment costs. The bears will say it's different this time because house prices haven't dipped as much as expected in a rising mortgage rate environment.
Source Fool.com
Whirlpool Corp. Stock
Currently there is a rather negative sentiment for Whirlpool Corp. with 2 Buy predictions and 5 Sell predictions..
A slightly negative potential of -11.26% at a current price of 89.02 € for Whirlpool Corp. is the result of a target price of 79 €.
