E Daily Stock Analysis: Western Union

person holding U.S. dollar banknote

Source: Unsplash 

The Western Union Co has the ticker symbol WU and is a member of the technology sector as an electronic transfer company. It has good value and average fundamental scores on its track record and is 20.54% underpriced based on its historic valuation. I last reported on WU in the last week of December 2020.

The Western Union Co has found favor with investors lately. WU dividends yield 3.8% while the company's free cash flow yield is 7.33% providing a 3.53% safety margin for the dividend. 

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 Company:

(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 $23.68 yesterday. A year ago its price was $23.05. Price per share has just recovered from the COVID recession, being 2.7% above last year's mark. 

If The Western Union Co stock trades in the range of $18 to $28 this next year, its recent $23.05 price might rise by $2.32 to reach $26.00 by March 3, 2022. That's above the median of twenty-two WU broker analyst projections. 

WU Dividends

Western Union's most recently declared quarterly dividend was $0.235 payable on March 31st. Dividends are estimated to total $0.94 per share annually and yield 3.97% at yesterday's $23.68 closing price. It has paid annually increasing dividends for six years

WU Returns

Adding the $0.94 annual WU anticipated dividend to my $2.32 price upside shows a $3.26 potential gross gain, per share, to be reduced by any costs to trade the shares.  

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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 solicitation, ...

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