Western Union: An Alternative For Income

Dividend Power
5.89K Followers

Summary

  • Western Union is yielding about 5.6% and is a Dividend Challenger.
  • The dividend safety is solid from the perspective of earnings, free cash flow, and debt. Western Union has investment grade credit ratings.
  • The company is faced with risks from more competition, transition to digital money transfer, and a new CEO.
  • The company is trying to expand into digital banking and shopping.
  • The stock is undervalued.

Western Union New York City

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Western Union (NYSE:WU) is little followed these days since it is no longer growing. Revenue has been flat for years, even after accounting for divestitures. Furthermore, competition in money transfer is increasing, and the competition often has deeper pockets. The

This article was written by

5.89K Followers
I am a self-taught individual investor and I have been investing in stocks for over 25 years. I focus on dividend growth investing with a long-term horizon since I believe in the compounding power of dividend growth investing. I generally look for undervalued large cap stocks with sustainable dividend growth and capital appreciation potential. My second focus is tech and small- or mid-cap stocks with or without dividends for their growth potential. I try to provide a little more in depth analysis weighing the positives and negatives. I am now in the Top 2.0% out of 28,000+ financial bloggers (December 2023) as tracked by Tip Ranks for my SA articles.Work/ associated with the existing authors James Marino and Ferdis.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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