From Yahoo Finance: 2025-06-12 12:33:00

The closed-end Guggenheim Strategic Opportunities Fund’s net asset value is declining, raising concerns about its sustainable distribution. Whirlpool may cut dividends to alleviate near-term pressures. UPS faces challenges as its free cash flow may not cover dividends in 2025, leading to potential dividend cuts for these three investments with high yields.

The closed-end fund, Guggenheim Strategic Opportunities Fund, has not covered its distributions with net investment income for seven years, leading to a decline in its net asset value. Whirlpool faces challenges in the housing market despite benefiting from Trump tariffs. UPS may have to cut its dividend to address economic impacts and strategic changes.

Whirlpool’s competitive positioning is positive despite housing market weakness. Its earnings and cash flow guidance face uncertainty due to trade conflicts and high mortgage rates. UPS may be a better investment if it cuts dividends to focus on higher-margin deliveries and technology investments for improved return on equity.

Consider investing in the 10 best stocks identified by The Motley Fool Stock Advisor team for potentially high returns. The Motley Fool recommends considering other stocks instead of United Parcel Service due to potential dividend cuts. High-yield dividend stocks like Guggenheim Strategic Opportunities Fund, Whirlpool, and UPS may face reductions to strengthen the companies.



Read more at Yahoo Finance: 3 Dividend Stocks With High but Shaky Yields That Are Probably Going to Get Cut