Western Union (WU) Declares $0.24 Dividend

Western Union said on February 7, 2023 that its board of directors declared a regular quarterly dividend of $0.24 per share ($0.94 annualized). Shareholders of record as of March 16, 2023 will receive the payment on March 31, 2023. Previously, the company paid $0.24 per share.

At the current share price of $13.95 / share, the stock's dividend yield is 6.74%. Looking back five years and taking a sample every week, the average dividend yield has been 4.42%, the lowest has been 2.83%, and the highest has been 7.29%. The standard deviation of yields is 0.94 (n=237).

The current dividend yield is 2.46 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 0.40. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.17%, demonstrating that it has increased its dividend over time.

Analyst Price Forecast Suggests 0.54% Upside

As of February 9, 2023, the average one-year price target for Western Union is $14.02. The forecasts range from a low of $10.10 to a high of $18.90. The average price target represents an increase of 0.54% from its latest reported closing price of $13.95.

The projected annual revenue for Western Union is $4,199MM, a decrease of 6.18%. The projected annual EPS is $1.63, a decrease of 30.56%.

What is the Fund Sentiment?

There are 1038 funds or institutions reporting positions in Western Union. This is a decrease of 19 owner(s) or 1.80% in the last quarter. Average portfolio weight of all funds dedicated to WU is 0.16%, a decrease of 6.99%. Total shares owned by institutions increased in the last three months by 0.24% to 443,463K shares. The put/call ratio of WU is 0.38, indicating a bullish outlook.

What are large shareholders doing?

Capital Research Global Investors holds 17,568K shares representing 4.55% ownership of the company. In it's prior filing, the firm reported owning 22,213K shares, representing a decrease of 26.44%. The firm decreased its portfolio allocation in WU by 31.62% over the last quarter.

Independent Franchise Partners LLP holds 16,625K shares representing 4.31% ownership of the company. In it's prior filing, the firm reported owning 17,144K shares, representing a decrease of 3.12%. The firm decreased its portfolio allocation in WU by 11.06% over the last quarter.

Van Eck Associates holds 12,529K shares representing 3.24% ownership of the company. In it's prior filing, the firm reported owning 11,019K shares, representing an increase of 12.05%. The firm decreased its portfolio allocation in WU by 7.37% over the last quarter.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 11,522K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 11,359K shares, representing an increase of 1.41%. The firm decreased its portfolio allocation in WU by 13.34% over the last quarter.

AMRMX - AMERICAN MUTUAL FUND holds 11,373K shares representing 2.95% ownership of the company. In it's prior filing, the firm reported owning 13,717K shares, representing a decrease of 20.61%. The firm decreased its portfolio allocation in WU by 33.29% over the last quarter.

Western Union Background Information
(This description is provided by the company.)

The Western Union Company is a global leader in cross-border, cross-currency money movement and payments. Western Union's platform provides seamless cross-border flows and its leading global financial network bridges more than 200 countries and territories and over 130 currencies. Western Union connects businesses, financial institutions, governments, and consumers through one of the world's widest reaching networks, accessing billions of bank accounts, millions of digital wallets and cards, and over half a million retail locations. Western Union connects the world to bring boundless possibilities within reach.

This story originally appeared on Fintel.