Daily Stock Analysis: Western Union (WU)

Dollar, Money, Cash Money, Business, Currency, Finances

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The Western Union Co has the ticker symbol WU and is a member of the Technology sector as an electronic transfer company. This is my fourth report on The Western Union Co for my Vista Portfolio. I last discussed  WU on March 3, 2021.

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 founded in 1851 and is headquartered in Denver, Colorado.

Three key data points gauge dividend equities or funds like The Western Union Co:

(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

The Western Union Co price per share closed at $24.67 yesterday. One year ago its price was $17.60. Price per share has increased over 40% from the midst of the COVID market slump. 

Should Western Union's stock trade in the range of $20 to $30 this year, its recent $24.67 price might rise by $5.33 to reach $28.00 by April 1, 2022. My estimate is $2.61 above the median estimate of twenty-two analysts tracking WU but $2.78 below YChart's historic multiple price calculation.

WU Dividends

The Western Union's most recently declared quarterly dividend was $0.225, paid March 31st (yesterday). Dividends are estimated to total $0.94 per share annually and yield 3.81% at yesterday's $24.67 closing price.WU has paid annually increasing dividends for seven years.

WU Returns

Adding the $0.94 annual WU anticipated dividend to my $3.33 price upside estimate shows a $4.27 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little over $1,000.00 today in The Western Union Co at $24.67 per share and we'd buy 41 shares of WU stock.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.24 per share.

Subtract that maybe $0.24 brokerage cost from my estimated $4.27 gross gain per share results in a net gain of $4.03 X 41 shares = $165.92 for a 16.5% net gain on a $1,011.47 investment.

The Western Union Co shows a possible 16.5% net gain including a 3.81% dividend yield. 

Over the next year at this time, a $1000 investment in WU could generate $38.10 in cash dividends. And a single share bought at yesterday's closing price was under $25! So, if WUI is your kind of technology investment, their price is almost 35% below the annual dividend income from $1,000 invested. This suggests that now could be a good time to add WU to your portfolio.

All of the estimates above are speculation based on the past history of The Western Union Co. 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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