Is NYSE:WU suited for dividend investing?

WESTERN UNION CO (NYSE:WU) has caught the attention of dividend investors as a stock worth considering. NYSE:WU excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

What does the Dividend looks like for NYSE:WU

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 9.06%, which is a nice return.
• WU's Dividend Yield is rather good when compared to the industry average which is at 3.77. WU pays more dividend than 97.06% of the companies in the same industry.
• WU's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
• WU has paid a dividend for at least 10 years, which is a reliable track record.
• WU has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• WU pays out 34.41% of its income as dividend. This is a sustainable payout ratio.

Health Assessment of NYSE:WU

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:WU scores a 5 out of 10:

• Looking at the Altman-Z score, with a value of 1.23, WU is in the better half of the industry, outperforming 63.73% of the companies in the same industry.
• WU has a Current Ratio of 2.17. This indicates that WU is financially healthy and has no problem in meeting its short term obligations.
• The Current ratio of WU (2.17) is better than 75.49% of its industry peers.
• A Quick Ratio of 2.17 indicates that WU has no problem at all paying its short term obligations.
• WU has a better Quick ratio (2.17) than 76.47% of its industry peers.

Profitability Assessment of NYSE:WU

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:WU scores a 7 out of 10:

• WU has a Return On Assets of 11.16%. This is amongst the best in the industry. WU outperforms 92.16% of its industry peers.
• WU has a better Return On Equity (96.42%) than 99.02% of its industry peers.
• With an excellent Return On Invested Capital value of 8.37%, WU belongs to the best of the industry, outperforming 82.35% of the companies in the same industry.
• Looking at the Profit Margin, with a value of 22.19%, WU is in the better half of the industry, outperforming 77.45% of the companies in the same industry.
• WU's Profit Margin has improved in the last couple of years.
• The Operating Margin of WU (18.22%) is better than 64.71% of its industry peers.
• WU's Operating Margin has improved in the last couple of years.

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Our latest full fundamental report of WU contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.