Daily Stock Analysis: Western Union Co.
The Western Union Co., known by the ticker symbol WU, is a mid cap financial technology firm in the Technology business sector. This is my first report on WU for my Viital stock portfolio and it was the thirtieth stock selected for my Vista portfolio number 6.
The Western Union Company was founded in 1851 and is headquartered in Denver, Colorado.
Image Source: Unsplash
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.
Three key data points gauge any dividend equity or fund such as The Western Union Co. (WU):
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether any company has made, is making, and will make money.
WU Price
Western Union's price per share was $19.31 as of yesterday's market close. One year ago its price was $19.44. So, WU's share price dropped about .06% in the past year.
If WU's stock trades in the range of $18 to $25.00 this next year, its recent $19.44 price could rise by $4.69 to reach $24.00 by October 27, 2022. My estimate is $1.33 less than the median of one-year target estimates by the fifteen analysts who track the stock for brokers.
WU Dividends
Western Union's most recent quarterly dividend of $0.235 was paid out on September 30, to shareholders. The resulting annual payout of $0.94 yields 4.87% based on yesterday's $19.31 closing price. WU has paid regular dividends increasing annually since March 2014: That is 7 years of increases.
WU Returns
Adding the $0.94 annual estimated WU forward-looking dividend to my $4.69 price upside estimate shows a $5.63 potential gross gain, per share, to be reduced by any costs to trade WU shares.
At yesterday's $19.31 price per share, a little over $1000 would buy 52 shares.
A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.19 per share.
Subtract that maybe $0.19 brokerage cost from my estimated $5.63 gross gain per share results in a net gain of $5.44 X 52 shares = $282.88 for a 28.25% net gain on a $1,004.12 investment.
So it is that The Western Union Co. (WU) shows a possible 28.25% net gain including a 4.87% forward estimated dividend yield.
Over the next year at this time a $1000 investment in The Western Union Co. (WU) could generate $48.70 in cash dividends alone. Plus a single share bought at yesterday's closing price was $19.31! Thus, Western Union Co's share price is $29.29 LESS than the dividend income from $1000.00 invested. Thus, according to my dogcatcher ideal, now IS the time to pickup WU shares. The estimated next year's dividend from $1k invested is nearly less than half the single share price. Consider yourself alerted. It's a sign!
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 market value.
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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