Should You Buy Western Union For Its 9.8% Yield?
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Labutes IR4.25K FollowersFollow5ShareSavePlay(15min)Comment(1)SummaryThe Western Union Company offers a high 9.8% dividend yield, but this reflects deep business challenges and structural decline in its core retail segment.WU's digital pivot and stablecoin launch show adaptation, yet competitive advantages in digital remain limited versus fintech disruptors.The Intermex acquisition increases retail exposure and leverage, raising concerns about strategic direction and capital allocation discipline.WU's dividend sustainability is questionable, as free cash flow barely covers payouts, and further capital returns may be constrained by rising leverage. martinrlee/iStock Editorial via Getty Images The Western Union Company (WU) offers a very high-dividend yield, but this is justified by the company’s business woes and poor fundamentals, being a yield trap in my opinion. Business & Financial Overview WesternThis article was written byLabutes IR4.25K FollowersFollowLabutes IR is a Fund Manager/Analyst specialized in the financial sector, with more than 18 years of experience in the financial markets. I have worked at several type of institutions in the industry, always at the buy side and related to portfolio management. Associated with the existing author The Outsider.Analyst’s Disclosure:I/we have a beneficial long position in the shares of PYPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.