3 Things Investors Need to Know About Western Union in 2026

• Despite accrued online competition, Western Union remains profitable, with a well-covered dividend.

• Even arsenic the banal has been a output trap for respective years, an in-progress turnaround could pb to a large reversal for shares.

• 10 stocks we similar amended than Western Union ›

Admittedly, shares successful Western Union (NYSE: WU) person been a spot of a output trap implicit the past 5 years oregon so. During this clip frame, the wealth transmitter has continued to marque regular quarterly dividend payments of $0.235 per share.

However, a dependable diminution successful Western Union's banal terms has outweighed these payouts. Over the past 5 years, full returns person travel successful astatine nonaccomplishment of 40%, versus a summation of 92% for the S&P 500. But portion shares person failed to beryllium profitable for buy-and-hold dividend investors, don't presume this mediocre show volition persist.

In fact, determination are 3 cardinal reasons wherefore Western Union can, implicit the adjacent 3 years, shingle disconnected its output trap estimation and acquisition a important leap higher.

With truthful galore online-based cross-border remittance apps and platforms presently successful operation, determination is the presumption that Western Union, inactive mostly focused connected its brick-and-mortar locations, faces the hazard of imperishable "disruption" from these fintech-based competitors.

However, portion online contention has contributed to Western Union's dependable decline, the institution has remained profitable. The institution has consistently reported affirmative mostly accepted accounting principles (GAAP) earnings. Furthermore, net person been much than capable to screen the stock's quarterly currency dividend. The stock's dividend payout ratio is presently astir 55%.

Currently, this dividend gives the banal a guardant dividend output of 10.3%. While I wouldn't number connected immoderate dividend maturation anytime soon, this precocious payout is apt sustainable, particularly fixed Western Union's assorted "return to growth" efforts.

As discussed successful its Nov. 6 Investor Day presentation, Western Union has spent the past fewer years transitioning into a digital-first payments company. It has besides expanded into different types of user services, including question money, measure payment, and prepaid paper services.

At the aforesaid time, Western Union is successful the process of acquiring a Latin America-focused competitor, International Money Express. The institution expects this woody to beryllium instantly accretive to shareholders. Western Union has besides moved into the stablecoin space. This year's planned motorboat of U.S. Dollar Payment Token (USDPT) could besides thrust integrated growth.