Daily Stock Analysis: The Western Union (WU)

A new portfolio of stocks I started building on September 8, named Vista, will select its second stock this coming weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!

Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)

Today we'll review the fifth of five technology sector stock candidates vying to be the second selection in the Vista portfolio.

My subject today is an information technology and services company named, The Western Union Co. Its trading ticker symbol is WU.  This is my first report on The Western Union Co. (WU) for my new Vista portfolio.  I did select WU for my previous Volio Portfolio and my trade is down 13%.

Western Union provides domestic and international money transfers through its global network of about 500,000 outside agents. It is the largest money transfer company in the world and one of only two companies with a truly global agent network, with MoneyGram being the other.

The Western Union Company was incorporated in 2006 and is headquartered in Denver, Colorado.

I use three key data points to gauge dividend equities or funds like The Western Union Co. (WU):

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

WU Price

Western Union's price per share closed at $22.62 yesterday. A year ago its price was $22.81. Price fell by $0.19 or just about 0.08% last year.

If WU's stock trades in the range of $17 to $27 this next year, its recent $22.62 price might rise by $1.38 to reach $24.00 by September 18, 2021. 

WU Dividends

WU's most recently declared quarterly dividend was $0.225 payable September 30th and will total $0.90 annually and yield 3.98% at yesterday's $22.62 closing price.

WU Gains?

Adding the $0.90 annual anticipated dividend to my $1.38 optimistic estimate of WU's price upside shows a $2.28 potential gross gain, per share, to be reduced by any costs to trade the shares.  

If we put little under $1,000.00 today in The 

Western Union Co. at $22.62, we would buy 44 shares of WU stock.

A $10 broker fee paid half at purchase and half at sale could cost us about $0.23 per share.

Subtract that $0.23 brokerage cost from my estimated $2.28 gross gain per share results in a net gain of $2.05 X 44 shares = $90.20 for a 9% net gain on a $995.28 investment.

Thus, The Western Union Co. (WU) shows a possible 9% net gain including a 3.98% dividend yield. It could be more, it could be less.  

All of the estimates above are speculation based on the past history of The Western Union Co. (WU).  Only time and money invested in this stock will determine its worth.

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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