U.S. News & World Report recently quoted Tradition’s Chief Investment Officer, Benjamin C. Halliburton in the article, “3 Dividend Stocks to Buy in January.” Below is an excerpt from the article:
Truly, 2018 has not been the kind of year to make Whirlpool (WHR) shareholders kiss their dishwashers in gratitude. “The business did not run smoothly,” says Benjamin C. Halliburton, chief investment officer at Tradition Capital Management in Summit, New Jersey.
Down 37 percent for the year, Whirlpool stock trades at about $104 per share, a low it last hit January 2013. Truly, that can’t be good news given how much the broader market has rocketed over that same period. The price of the S&P 500, for example, shot up from $1,571 to $2,400 – a 58 percent increase.
What made Whirlpool’s year so dishwater dull? Like GM, tariffs have complicated supply lines and sent a chill through investors. That may explain why right now, the majority of analyst firms remain on the “hold” fence; one rates Whirlpool a “buy” and a second a “strong buy.”
And yet, WHR represents what some experts believe is an undervalued stock – one with deep roots that among appliance companies make it the world’s oldest (1911) and largest (92,000 employees). It also has a healthy market cap of $6.5 billion.
“WHR trades at 8 times 2019 estimated earnings of $15.80,” Halliburton says. Its current quarterly dividend of $1.15 cents per share, which has almost doubled since 2014, delivers a yield of 3.82 percent. “Earnings should recover in 2019.”
First featured on traditionadvisers.net.