Which High-Yield Dividend Stock Is Cheaper, Whirlpool or Altria?

2 weeks ago 11

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Eric Volkman, The Motley Fool

Tue, Mar 25, 2025, 8:18 AM 3 min read

Whirlpool (NYSE: WHR) and Altria Group (NYSE: MO) person astir thing successful common. After all, the erstwhile is simply a shaper of appliances similar refrigerators and dishwashers, and the second is simply a baccy and related consumables manufacturer. But there's 1 facet of each of these stocks that's astir successful lockstep -- some wage retired a high-yield dividend supra 7%.

Part of the crushed for that is their banal show close present is underwhelming. Given the generous dividend organisation though, it's worthy taking a little look astatine the brace to spot which 1 mightiness beryllium much of a bargain.

Neither banal is successful favour conscionable now. There is immoderate marketplace interest that Whirlpool volition beryllium susceptible to a protracted commercialized war, and Altria's halfway product's popularity is successful semipermanent decline.

Of the pair, though, Whirlpool is being much unjustifiably punished. The starkest illustration of this successful the stock's valuation is its price-to-sales ratio, which presently stands astatine 0.31. Altria's is implicit 4.8.

Whirlpool's skinny fig is the effect of a important share-price diminution lately. While tariffs and threats of tariffs did spook immoderate investors (as it's definite to rise prices for immoderate cardinal inputs), disappointing fourth-quarter net were besides to blame. Both gross and profitability guidance for full-year 2025 fell abbreviated of the statement expert estimates and helped onshore Whirlpool successful the capitalist doghouse.

At slightest Whirlpool, with its mostly well-reputed location appliances, isn't operating successful an ever-shrinking industry. Altria's large situation is the steep autumn successful the popularity of cigarettes, a lasting inclination that astir surely won't reverse.

Altria tries mightily to compensate for this, with terms increases for classical cigarettes and a sustained propulsion into alternatives, similar vape products. Nothing is truly sticking, though, and income maturation has been constricted lately, astatine best. That lofty price/sales fig is wholly unjustified, fixed this.

To me, the wide prime betwixt the 2 stocks is Whirlpool due to the fact that its challenges look much impermanent than Altria's. The quality successful the price-to-sales ratio is conscionable excessively melodramatic to ignore.

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