Is NYSE:WU suited for dividend investing?

Last update: Feb 26, 2024

Discover WESTERN UNION CO (NYSE:WU)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:WU showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

Exploring NYSE:WU's Dividend

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:WU has achieved a 8 out of 10:

WU has a Yearly Dividend Yield of 7.26%, which is a nice return.
Compared to an average industry Dividend Yield of 3.45, WU pays a better dividend. On top of this WU pays more dividend than 97.09% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, WU pays a better dividend.
WU has been paying a dividend for at least 10 years, so it has a reliable track record.
WU has not decreased their dividend for at least 10 years, which is a reliable track record.

Evaluating Health: NYSE:WU

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:WU, the assigned 5 for health provides valuable insights:

With a decent Altman-Z score value of 1.17, WU is doing good in the industry, outperforming 64.08% of the companies in the same industry.
The Debt to FCF ratio of WU is 3.73, which is a good value as it means it would take WU, 3.73 years of fcf income to pay off all of its debts.
WU's Debt to FCF ratio of 3.73 is fine compared to the rest of the industry. WU outperforms 66.02% of its industry peers.

A Closer Look at Profitability for NYSE:WU

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:WU has achieved a 8:

WU has a Return On Assets of 7.64%. This is amongst the best in the industry. WU outperforms 87.38% of its industry peers.
With an excellent Return On Equity value of 130.69%, WU belongs to the best of the industry, outperforming 98.06% of the companies in the same industry.
The Return On Invested Capital of WU (10.05%) is better than 85.44% of its industry peers.
WU had an Average Return On Invested Capital over the past 3 years of 11.59%. This is above the industry average of 7.25%.
The Profit Margin of WU (14.37%) is better than 71.84% of its industry peers.
The Operating Margin of WU (18.76%) is better than 64.08% of its industry peers.
WU's Operating Margin has improved in the last couple of years.
WU has a Gross Margin of 38.68%. This is in the better half of the industry: WU outperforms 62.14% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of WU

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.