Latest news with #Whirlpool
Yahoo
6 hours ago
- Business
- Yahoo
Samourai Wallet devs plead guilty to money-transmitting charge as Tornado Cash verdict looms
The co-founders of a popular Bitcoin mixing service pleaded guilty on Wednesday to conspiracy to operate an unlicensed money transmitting business. Samourai Wallet co-founders Keonne Rodriguez and William Lonergan Hill did not plead guilty to a separate money laundering charge. They will be sentenced in November. Their plea deal in US court in New York came amid closing arguments in the separate criminal trial of Roman Storm, the co-founder of Tornado Cash, another so-called crypto mixer. Jurors in that case could deliver a verdict as early as Wednesday. Crypto privacy Like the Samourai co-founders, Storm is facing charges of conspiracy to launder money and to operate an unlicensed money transmitting business. But the Tornado Cash co-founder has also been charged with conspiracy to violate US sanctions. He faces more than 40 years in prison. The prosecution of the developers behind Samourai Wallet and Tornado Cash have galvanized crypto proponents who fear financial and technological privacy rights are in jeopardy. Guilty verdicts would have far-reaching consequences, they say, as they would imply that many developers of privacy-enhancing software can be held criminally liable for their work. Whirlpool feature Launched in 2015, Samourai Wallet is a mobile Bitcoin wallet available on the Google Play store, where it was downloaded more than 100,000 times, according to court papers. It was removed from the store after the founders were charged last year. In 2017, the venture launched a privacy-enhancing feature called Ricochet, which routed Bitcoin transfers through additional wallets to complicate attempts to trace the Bitcoin to its ultimate destination, prosecutors said. Two years later, Samourai launched the Whirlpool feature, which mixes users' Bitcoin, making it difficult, if not impossible, to trace. More than $2 billion in Bitcoin has passed through the Ricochet and Whirlpool features, according to court papers. About $250 million of that Bitcoin came from various hacks and scams, prosecutors allege. And the Samourai co-founders had knowledge of this activity, according to the indictment. In a WhatsApp exchange in January 2018, Rodriguez, asked to explain what 'mixing' was, replied, 'money laundering for Bitcoin,' said court papers. 'Samourai Wallet was overwhelmingly used — by tens of thousands of everyday people.' On Dread, a darkweb alternative to Reddit, one user in the 'laundromat' forum asked other users to recommend 'secure methods to clean dirty BTC' so they would 'never get caught.' Hill recommended Samourai Whirlpool, according to the indictment. Legitimate purpose While dirty Bitcoin flowed through Samourai, Rodriguez and Hill ran a Samourai server and paid for web hosting services and Google Play store fees. By April 2024, they had collected a cumulative $4.5 million in fees from Samourai users, according to the indictment. For months, Rodriguez and Hill fought the charges, echoing claims Storm has made in his defense. 'Far from the money-laundering bogeyman portrayed by DOJ, Samourai Wallet was overwhelmingly used — by tens of thousands of everyday people — for a legitimate purpose: to keep their private financial information private,' Rodriguez's attorney wrote in a motion to dismiss the charges. 'Essentially, Samourai allowed users to avoid posting the cryptocurrency-equivalent of their private credit card or bank statements on the internet for all the world to see.' Key to the developers' defence was 2019 guidance from the Treasury Department's Financial Crimes Enforcement Network, or FinCEN, which stated 'an anonymizing software provider is not a money transmitter.' Indeed, officials at FinCEN reiterated that view in a call with prosecutors in August 2023 — six months before the prosecutors charged the Samourai co-founders. 'Because Samourai does not take 'custody' of the cryptocurrency … that would strongly suggest that Samourai is NOT … acting as an [money services business],' one of the prosecutors wrote in an email summary to their supervisor. The substance of that call became a point of controversy in May, when defence attorneys complained that prosecutors had not furnished the potentially exculpatory information until they were asked for it directly. Before Wednesday's plea agreement, Rodriguez and Hill were set to go to trial in November. Letter campaign The allegation that the founders ran an unlicensed money-transmitting business drew substantial criticism from the crypto industry and its supporters. In May 2024, Senators Cynthia Lummis, a Republican from Wyoming, and Ron Wyden, a Democrat from Oregon, wrote then-Attorney General Merrick Garland to protest the Department of Justice's 'unprecedented' interpretation of the federal money-transmitting law, which, they said, threatened to criminalise developers of non-custodial crypto software. And in March, more than 30 crypto companies and lobbying firms signed a letter to lawmakers decrying prosecutors' decision to bring money-transmitting charges against the Samourai and Tornado Cash co-founders, writing, 'under this interpretation, essentially every blockchain developer could be prosecuted as a criminal.' A month later, the Department of Justice published a four-page memo stating it no longer intended to pursue cases in which it charges crypto mixers 'for the acts of their end users or unwitting violations of regulations.' Nor would it pursue charges for unlicensed money transmitting, violations of the Bank Secrecy Act, or failure to register with US financial regulators without evidence the mixers knew of those requirements. In a footnote, however, the department said it was not changing its guidance in cases where business owners know they're handling dirty money. Rodriguez and Hill were arrested in the US and in Portugal, respectively, in April 2024. Aleks Gilbert is DL News' New York-based DeFi correspondent. You can reach him at aleks@ Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
CNBC
10 hours ago
- Business
- CNBC
These stocks have dividends that beat the market — and the companies aren't stretching to pay out, says Bank of America
Income-focused investors can find attractive dividends in the market right now, but should dig beneath the surface before buying, according to Bank of America. High dividend yields can sometimes mask issues inside companies. Those payout can also be in danger of being cut if corporations run into trouble. For example, Whirlpool currently yields over 8%, but said Monday it's planning to reduce its quarterly dividend to 90 cents a share, from $1.75 a share. In addition, the appliance maker slashed its full-year guidance, saying tariffs were causing competitors to stockpile Asian imports in the U.S. That said, there are many companies that pay solid dividends that have the cash flow to cover them. Those payouts are also expected have more of an impact on future returns than they have in the recent past, said Savita Subramanian, equity and quant strategist with Bank of America Securities "We are now in a total return world in which the contribution of dividends to total market returns could be significantly higher than it was in the last decade, a period marked by falling cash yields and lofty price returns," she said in a note published Friday. "We advise investors to seek out companies with above-market but not stretched dividend yields," the strategist added. The S & P 500 index as a whole currently yields 1.16% To find stocks that qualify, with safe, above-average yields, Subramanian looked first at the Russell 1000 . The team calculated and ranked companies by their trailing 12-month yield. Those in the second quintile of dividend yielders are less likely to include distressed companies that may migrate up to the first quintile, the highest dividend yield group, if their stock price falls ahead of potential dividend cuts, she said. "Quintile 2 also incorporates a 'buy low, sell high' valuation discipline in that if prices rise faster than dividends grow, companies would likely migrate into Quintile 3," Subramanian said. Here are some of the stocks that made the screen for July, according to Bank of America. Exxon Mobil currently boasts a 3.5% dividend yield and is up nearly 5% so far this year. The largest energy company in the U.S. has increased its dividend for 42 consecutive years, senior vice president Jack Williams said at a conference in June. The company is set to report second-quarter earnings on Friday. In May, Exxon Mobil first-quarter earnings topped analyst estimates , but revenue fell short. The stock has an average rating among analysts of overweight and 10% upside to the average price target, according to FactSet data. American Electric Power , which pays a dividend equal to a 3.4% yield, reported premarket Wednesday that second-quarter revenue and operating earnings topped analyst expectations. The Columbus, Ohio-based utility also said it expects to announce a new, five-year capital plan of about $70 billion later this year. "AEP is strategically positioned for sustained growth as we transform the electric grid and invest in new resources to meet the generational load growth opportunity in front of us, benefiting our customers, communities and all other stakeholders," CEO Bill Fehrman said in a statement. Shares have gained 23% year to date. Ventas , which has a dividend yield of 2.9%, is set to report second-quarter financial results after the bell Wednesday. The real estate investment trust's portfolio includes senior housing communities, skilled nursing facilities and medical office buildings in 1,400 properties across the U.S., Canada and United Kingdom. Several Wall Street analysts like Ventas as a play on an aging population . It has an average rating of buy from those covering the stock and 13% upside to the average price target, according to FactSet. Shares have moved 14% higher so far this year. Analysts also recommend Philip Morris International . The stock has an average rating of overweight among analysts, and 17% upside to the consensus price target, per FactSet. PM YTD mountain Philp Morris International year to date The Marlboro cigarette maker, which yields 3.3%, recently reported disappointing revenue for its second quarter, although earnings topped expectations and it raised full-year guidance. While the stock fell 8% on the results last Tuesday, it is still up 36% for the year thanks to the popularity of its smoke-free products, notably its Zyn oral nicotine pouch. Philip Morris ultimately plans to replace cigarettes with smoke-free alternatives. Coca-Cola also reported earning s last Tuesday, beating on both the top and bottom lines. The stock has a 2.9% yield and has gained 11% year to date. Coke's results speak to the resilience of the economy and consumer spending, CEO James Quincey told CNBC after the earnings release. Meanwhile, the Sprite and Fanta maker has been weighing the potential impact of tariffs, he said. "We have certainly seem, so far as we manage the business in the U.S., that we haven't needed to do any big adjustments so far this year. And we are pretty confident we can see the year through managing all the puts and takes," Quincy said in an interview with " Money Movers ." Coca-Cola has an average rating of overweight among analysts and 15% upside to the average price target, according to FactSet.
Yahoo
18 hours ago
- Business
- Yahoo
Prediction: These 3 Dividend Stocks Will Soar in the Second Half of 2025
Key Points Brookfield Infrastructure operates a massive infrastructure portfolio, and its stock offers an attractive high-yield dividend. It could be worse before it gets much better for Whirlpool. Dow is a deep value stock for risk-tolerant investors. 10 stocks we like better than Brookfield Infrastructure › Despite an epic sell-off in April, the S&P 500 (SNPINDEX: ^GSPC) recovered and rose 5.5% in the first half of 2025. It's a decent performance considering the index has averaged a 12.2% annual gain over the last decade. And the S&P 500 is up another 2.6% in July at the time of this writing. However, not all individual stocks have benefited from the index's rise. Brookfield Infrastructure (NYSE: BIP) (NYSE: BIPC) is up slightly on the year, while Whirlpool (NYSE: WHR) and Dow (NYSE: DOW) are down big. Here's why these three beaten-down dividend stocks have what it takes to recover in the second half of the year. Brookfield Infrastructure offers a high-yield stock that's partly powered by data centers Scott Levine (Brookfield Infrastructure): Lagging the 8.2% rise in the S&P 500 since the start of 2025, shares of Brookfield Infrastructure are up 4.9% year to date as of this writing. While the stock's underperformance may be disheartening for shareholders, there's no reason to speculate that the trend will continue throughout the remainder of the year. In fact, there's good reason to suspect that shares will bound higher in the back half of 2025, making today a great time for passive income investors to pick up Brookfield Infrastructure stock along with its 4.1% forward-yielding dividend. While Brookfield Infrastructure stock has provided a lackluster performance recently, the growing interest in artificial intelligence (AI) may lead investors to consider Brookfield Infrastructure stock as a way to gain AI exposure. Because data centers provide the backbone for AI computing, data center stocks have benefited from the explosion in AI interest. In addition to the midstream, transport, and utility assets it operates, Brookfield Infrastructure also includes data centers in its portfolio. In fact, data centers represent about 13% of Brookfield Infrastructure's funds from operations. And while it doesn't represent one of the larger asset classes in the portfolio at present, there's no reason to dismiss the possibility that the company may seek further data center acquisitions to strengthen its portfolio. Currently, shares of Brookfield Infrastructure are priced at a discount to their historical valuation, trading at 3.3 times operating cash flow compared to the five-year average operating cash flow multiple of 4. Although semiconductor stocks and nuclear energy start-ups are getting the lion's share of attention right now as AI investment opportunities, Brookfield Infrastructure isn't basking in the limelight. However, that may change significantly in the remainder of 2025. A long-term winner from the trade war Lee Samaha (Whirlpool): This is a somewhat controversial call, but hear me out. I believe the household appliance maker may well be compelled to revise its full-year earnings and cash flow expectations, and potentially cut its dividend in the process. The reality is that mortgage rates are close to where they were when the Federal Reserve last started cutting its rates last year, and the housing market hasn't shown meaningful improvement. That's not great news for a company that relies on purchases of higher-margin, discretionary major household appliances. In addition, the fear of further tariff escalation may have encouraged Asian competitors to push forward imports to the U.S. The setup is not ideal going into the company's second-quarter earnings report, and significant near-term risks remain. Still, there's strong reason to believe that Whirlpool will emerge as a long-term winner from President Trump's trade actions, not least as the administration seeks to close loopholes that have allowed competitors to avoid paying tariffs on Chinese steel used in their products. Moreover, with 80% of what it sells in the U.S. being produced in the U.S., the company is well positioned to prosper long-term from ongoing tariffs. The market may recognize that possibility after the earnings report (which could contain bad news) is released. Dow is a better buy now that the dividend is lower Daniel Foelber (Dow): The chemical giant plummeted 17.5% on July 24 in response to weak second-quarter 2025 results and a 50% cut to its dividend. The dividend reduction marks the first adjustment to the payout since Dow spun off from DowDuPont in 2019 and initiated a $0.70 per share quarterly dividend. The latest quarterly dividend was $0.35 per share. Dow's sales and earnings continue to decline due to weak volumes and pricing pressure. The commodity chemical industry is in a multiyear downturn due to weakness across end markets, with Dow calling the situation a "lower-for-longer earnings environment" in its second-quarter earnings release. "Dow's strategic actions enable us to mitigate the dynamic factors that our industry is facing," said Dow's CEO, Jim Fitterling, in the earnings release. "However, signs of oversupply from newer market entrants who are exporting to various regions at anti-competitive economics require broader industry engagement and additional regulatory action to restore competitive dynamics." Dow's plummeting earnings, a lack of guidance, and management's concerns about a prolonged downturn have led investors to become understandably sour on the stock. The cut to the dividend means there's less passive income to help cushion declines in the stock price. But as I alluded to in June, even if Dow cut its dividend in half, it would still have an excellent yield because the stock is so beaten-down. Even after the dividend cut, Dow still yields a sizable 5.6%. More importantly, the dividend cut frees up dry powder for Dow to fix the underlying business, manage costs, and ride out this downturn. The company has sold off some assets to raise cash, but that's not a viable long-term strategy. The dividend cut will save Dow about $990 million per year. For context, Dow's cost-saving program is $1 billion -- so cutting the dividend is roughly equal to efforts across Dow's operations. Typically, shareholders prefer to see dividend growth, not a cut. So it may seem strange to buy the stock now that there's less passive income. But long-term investors that are more interested in where a company is headed than where it has been may want to scoop up shares in this commodity chemical giant while it is out of favor. With cost savings, a lower dividend expense, and billions in cash flow from asset sales, Dow has what it takes to endure this slowdown and return to earnings growth when the cycle turns. If macro data is encouraging, I could see Dow recovering quickly in the second half of the year. However, Dow is forecasting more challenges across its end markets -- especially infrastructure. So it's best to only consider the stock if you have a long-term investment time horizon and a high-risk tolerance, given there's no telling how long this downturn will last. Should you buy stock in Brookfield Infrastructure right now? Before you buy stock in Brookfield Infrastructure, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Brookfield Infrastructure wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $633,452!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,083,392!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Daniel Foelber has no position in any of the stocks mentioned. Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Infrastructure Partners and Whirlpool. The Motley Fool has a disclosure policy. Prediction: These 3 Dividend Stocks Will Soar in the Second Half of 2025 was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
19 hours ago
- Business
- Yahoo
Whirlpool is championing the tariffs that have hammered its quarter
Getting clobbered by tariff disruptions has a way of creating opponents of shifting US trade policy. But for companies that can weather price increases for long-term structural benefits, the tariffs can in fact act like a competitive reset. Whirlpool's (WHR) disappointing results but full-throated support of new levies illustrate a key story this earnings season: Some executives are championing the tariffs. A look at Whirlpool's stock chart after the company reported on Tuesday doesn't scream All-American victory. Quite the opposite. As Asian rivals stockpiled refrigerators and ranges, washers and dryers, in a bid to front-run looming tariffs and boost sales, Whirlpool lost out. And the stock plummeted after the appliance maker cuts its full-year earnings forecast and dividend, pointing to competition and flagging consumer sentiment. Whirlpool was caught up in the tariff turmoil during the first Trump administration too. The company was forced to raise prices as the US raised levies on the raw materials needed to build its marquee products. This time around, Whirlpool has raised prices again, but executives said they are also aiming to lower costs and work with suppliers to offset higher tariffs. (Prices for major appliances rose 2.4% in June compared to a year ago, according to the latest Consumer Price Index (CPI) released earlier this month.) Sign up for the Yahoo Finance Morning Brief By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Other parts of corporate America are absorbing the initial tariff costs, resisting price hikes and minimizing the pass-through to consumers. Read more: 5 ways to tariff-proof your finances But in the long run, Whirlpool sees itself emerging as a winner in the latest trade battle. Wielding a significant US manufacturing footprint, the Michigan-based company said the new tariffs will boost its prospects as foreign competitors will eventually have to raise prices. 'We continue to expect the administration's tariff policies will help level the playing field for US-based producers and, in effect, make Whirlpool a net winner," said CFO Jim Peters during the earnings call Tuesday. Whirlpool also anticipates consumer sentiment shifting back in its favor. A stronger housing market with more home sales should drive higher demand in the medium and long term, the company said. Expected lower interest rates and a recovery in housing starts would also benefit the company, as new homeowners and builders fill kitchens, basements, and laundry rooms with Whirlpool products. Meanwhile, executives are looking past the tariff setbacks, just like the rest of the market. "We are in a position to win over time and are confident these effects are temporary in nature," said CEO Marc Bitzer during the call. That's a statement that could stand in for US trade policy in general. And while a good chunk of investors don't seem to agree when it comes to Whirlpool, the broader market is more or less in alignment. Hamza Shaban is a reporter for Yahoo Finance covering markets and the economy. Follow Hamza on X @hshaban. Click here for in-depth analysis of the latest stock market news and events moving stock prices Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19 hours ago
- Business
- Yahoo
From refrigerators, to snacks, to detergent, US households are looking for low-cost alternatives everywhere
Americans looking to replace an appliance, restock their pantry, or refresh their household cleaning products all seem to be angling for the same thing right now — lower prices. Comments from companies ranging from Whirlpool (WHR) to Procter & Gamble (PG), as well as major snack brands like PepsiCo (PEP) and Coca-Cola (KO), have told investors this month that cautious consumers are also deal-seeking consumers. "We continue to see consumers choosing to mix into lower-end products," CEO Marc Bitzer of Whirlpool, the company behind KitchenAid mixers and Maytag kitchen appliances, told investors on the company's earnings call Tuesday morning. Bitzer said that "macroeconomic uncertainty marked by elevated interest rates and evolving trade policies negatively impacted consumer sentiment," leading to "suppressed demand" in its latest quarter. The company missed on both the top and bottom lines and cut its guidance in its latest quarterly results. Major domestic appliance sales in North America were down about 5% year over year and industry shipments were down roughly 1%. Whirlpool stock fell over 13% following the results. And this shift in consumer behavior is not only weighing on big-ticket purchases, but is also influencing buying behaviors for household cleaning essentials like laundry detergent. P&G CEO Jon Moeller told Yahoo Finance the company is seeing a "more cautious consumer in many parts of the world." "We are seeing modest trade-down within our branded portfolio ... different Tide offerings, there are some that are more premium than others, and we are seeing some trade down there," Moeller said. "We're also seeing some trade-down to brands ... like Gain." P&G also announced plans to cut 7,000 jobs by the end of fiscal 2027. Moeller said the restructure would allow the company to reinvest in the business and innovation to draw in consumers. Kelly Pedersen, PwC's global retail leader, said consumers are "super price conscious" and "really looking for any deal that they can get right now." Data from the Conference Board published Tuesday showed consumer confidence remains depressed from a year ago, with confidence in the labor market and fears over inflation weighing on outlook. "Consumers' write-in responses showed that tariffs remained top of mind and were mostly associated with concerns that they would lead to higher prices," said Stephanie Guichard, senior economist at the Conference Board. "In addition, references to high prices and inflation rose in July." This week's comments from Whirlpool and P&G follow similar notes from food and beverage giants Coca-Cola and PepsiCo, which reported their quarterly results earlier this month. Coca-Cola CFO John Murphy told Yahoo Finance last week, Ppart of what we continue to be very focused on is to offer even more affordable options," as low-income consumers remain under pressure. PepsiCo CEO Ramon Laguarta told investors on the company's earnings call that it is "trying to make granular investments in value, [to] make sure that consumers stay within our brands." He added, "Better entry points, better value every day, and that has been successful." Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@ Click here for all of the latest retail stock news and events to better inform your investing strategy Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
