What I'm Watching With Western Union To See If They Beat The Market

By Reuben Gregg Brewer – Mar 22, 2026 at 6:15PM ESTKey PointsWestern Union helps people transfer money worldwide.Competition has increased, but Western Union has been fighting back.Western Union (WU 1.63%) has an iconic, trusted name and a business dating back to the mid-1800s. That didn't protect the company from competitors who used the internet to offer lower costs and easier-to-access money transfer services. Since 2020, Western Union's stock has lost roughly two-thirds of its value. But a turning point for the business could be on the horizon. Western Union has struggled Wall Street didn't miss any memos; Western Union's revenues have been heading lower for years. There was a slight uptick during the coronavirus pandemic, but demand for its services has clearly been in decline. Earnings, meanwhile, have been volatile. Image source: Getty Images. One of the biggest problems is that competitors have used the internet to offer competing services. Upstarts often attempt to undercut existing companies on price, siphoning off customers. That has had a predictable impact on Western Union's business. And the increased competition has forced Western Union to invest in improving its own offering to compete with the upstarts. Western Union is a different company today A lot of heavy lifting has taken place at the financial services provider. Most notably, Western Union has leaned heavily into modernizing its technology, shifting toward the web while still maintaining its highly visible physical presence. That means it still has wide brand recognition, but now it also has a better ability to take on the start-ups that were pulling its customers away. ExpandNYSE: WUWestern UnionToday's Change(-1.63%) $-0.15Current Price$9.03Key Data PointsMarket Cap$2.8BDay's Range$8.97 - $9.2052wk Range$7.85 - $10.70Volume289KAvg Vol8.5MGross Margin32.79%Dividend Yield10.42% However, the bigger story for investors is the company's adjusted operating margin. In the fourth quarter of 2024, Western Union's margin was 17%. It jumped to 19% in the first half of 2025 and then rose to 20% in the second half. Year over year, the company's adjusted operating margin increased three percentage points in the fourth quarter of 2025. That's an early sign that Western Union could be nearing an important inflection point as a business. Investors are starting to notice Western Union's success Over the past six months, Western Union's stock price has increased by about 10%. The S&P 500 index (^GSPC 1.51%) has lost roughly 1% over that same span. With a lofty 10% dividend yield and a turnaround plan that appears to be gaining traction, I'm watching to see if Western Union can keep improving its margins. That said, Western Union is only appropriate for more aggressive dividend investors. Fourth-quarter earnings more than covered the quarterly dividend, but the turnaround here is still in its early stages.Read NextFeb 23, 2026 •By Selena MaranjianOverlooked and Undervalued: Why Western Union Deserves AttentionFeb 19, 2026 •By Reuben Gregg BrewerIs Western Union an Underrated Financial Stock Investment Play?Jan 24, 2026 •By Thomas Niel3 Things Investors Need to Know About Western Union in 2026Jan 21, 2026 •By Bram BerkowitzWestern Union Stock: Buy, Sell, or Hold in 2026?Oct 28, 2025 •By Thomas Niel2 High-Yield Dividend Stocks Set to SoarDec 16, 2024 •By Eric VolkmanWhy Western Union Stock Bounced 4% Higher TodayAbout the AuthorReuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewerStocks MentionedWestern UnionNYSE: WU$9.03(-1.63%)-$0.15S&P 500 IndexSNPINDEX: ^GSPC$6,506.48(-1.51%)-$100.01*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.