Give It a Whirlpool

Appliance maker Whirlpool (NYSE: WHR) is navigating a complicated environment. A strengthening U.S. dollar is knocking down international sales because of currency translation effects, inflation from raw materials and tariffs is pushing up costs, and weak industry demand in North America is creating challenges in the company’s core market.

Despite these headwinds, Whirlpool was able to put together a solid first quarter. The company did miss analyst estimates for revenue, but it produced better-than-expected earnings and reiterated its full-year profit expectations.

The company generates about $21 billion in annual sales, employs more than 90,000 people and in 2018, boasted 65 manufacturing and technology research centers. Its appliance brands include Whirlpool, KitchenAid, Maytag, Consul, Brastemp, Amana, Bauknecht, JennAir and Indesit, and it sells its products around the world.

Whirlpool operates in a cyclical industry, with its fortunes tied to the prevailing economy. It depends on a strong housing market and strong demand for home renovations. Additional tariffs beyond those already announced could also derail the bottom line.

With those risks in mind, even though it might be a bumpy ride, Whirlpool still looks like a solid long-term investment. Its dividend, which recently yielded 3.5%, is likely to keep being paid through economic upturns and downturns.