|
The Western Union Co, known by the ticker symbol WU, is a mid cap Financial Technology in the technology business sector. This is my second report on WU for my Viital stock portfolio. I last reviewed WU on October 27th for my Vista portfolio (my sixth).
|
|
|
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 $16.40 as of Friday's market close. One year ago its price was $18.30. Thus, WU's share price fell about 10.4% in the past year.
If WU's stock trades in the range of $10.00 to $25.00 this next year, its recent $16.40 share price could rise by $3.60 to reach $20.00 by November 28, 2022. My estimate is $2.00 under the median of the fifteen analyst estimates who cover The Western Union Co (WU) for brokerages.
WU Dividends
Western Union's most recently announced quarterly dividend of $0.235 pays out November 30th (tomorrow) to shareholders of record November 15th. The compounded annual payout of $0.94 yields 5.73% per Friday's $16.40 closing price.
The Western Union Co (WU) has paid quarterly dividends increasing generally annually since March, 2014. That nearly 8 years of increasing payouts.
WU Returns
Adding the $0.94 annual estimated WU forward-looking dividend to my $3.60 price upside estimate shows a $4.54 potential gross gain, per share, to be reduced by any costs to trade WU shares.
At Friday's $16.40 price per share, a little over $1000 would buy 61 shares.
A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.16 per share.
Subtract that maybe $0.16 brokerage cost from my estimated $4.54 gross gain per share results in a net gain of $4.38 X 61 shares = $267.18 for an 26.7% net gain on a $1.000.40 investment.
So it is that The Western Union Co (WU) shows a possible 26.7% net gain including a 5.73% forward estimated dividend yield.
Over the next year at this time a $1000 investment in The Western Union Co (WU) could generate $57.30 in cash dividends alone. Note that a single share of WU bought at Friday's closing price was $16.40! Thus, The Western Union Co (WU) share price is nearly 3.5 times less than the dividend income from $1000.00 invested. Thus, according to my dogcatcher ideal, now is a prime time to pickup The Western Union Co shares. The estimated next-year dividend from $1k invested is nearly 3.5 times the single share price. Consider yourself alerted. Its a sign! Now may be a prime time to buy The Western Union Co (WU) shares.
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.
