Western Union Stock Down 58%, Yet Offers Over 10% Dividend Yield
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 21 2026
0mins
Source: Fool
- Revenue Decline: Western Union's consumer money transfer business saw an 8% year-over-year revenue drop in the first three quarters of 2025, accounting for 85% of total revenue, indicating significant pressure in a competitive payments landscape.
- New Business Growth: Despite the struggles of its traditional business, Western Union's newer consumer services division experienced nearly 50% revenue growth in the same period, showcasing success in diversifying payment options.
- Cash Flow and Debt Management: By the end of Q3 2025, the company's cash decreased from nearly $1.5 billion to $948 million, yet it managed to make $500 million in debt repayments, demonstrating that operating cash flow can comfortably cover its high 10.28% dividend yield.
- Valuation Assessment: Trading at just 5 times forward earnings, Western Union is viewed as a deep-value turnaround opportunity despite ongoing challenges, prompting investors to consider holding or initiating small positions to monitor the company's progress.
Discover Tomorrow's Bullish Stocks Today
Receive free daily stock recommendations and professional analysis to optimize your portfolio's potential.
Sign up now to unlock expert insights and stay one step ahead of the market trends.
Analyst Views on WU
Wall Street analysts forecast WU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for WU is 9.00 USD with a low forecast of 7.00 USD and a high forecast of 10.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
0 Buy
7 Hold
4 Sell
Moderate Sell
Current: 9.340
Low
7.00
Averages
9.00
High
10.00
Current: 9.340
Low
7.00
Averages
9.00
High
10.00
About WU
The Western Union Company is a provider of cross-border, cross-currency money movement, payments, and digital financial services, empowering consumers, businesses, financial institutions, and governments. Its segments include Consumer Money Transfer and Consumer Services. The Consumer Money Transfer segment facilitates money transfers, which are primarily sent from its retail agent and owned locations worldwide or through Websites and mobile devices. Its money transfer service is provided through one interconnected global network. This service is available for international cross-border transfers and, in certain countries, intra-country transfers. The Consumer Services segment includes the Company’s bill payment services, money order services, retail foreign exchange services, media network, prepaid cards, lending partnerships, and digital wallets. The Company provides its services primarily through a network of agent locations in more than 200 countries and territories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Remitly Global's Growth and Market Outlook Analysis
- Significant Revenue Growth: Remitly's revenue increased by 25% to $419.5 million, with a 35% rise in send volume to 19.5 million transactions, indicating a strategic shift to expand market share despite a lower take rate.
- Improved Profitability: The company reported a net income of $8.8 million in Q3, achieving profitability under GAAP, although margins remain minimal, highlighting ongoing challenges in cost management.
- Future Growth Expectations: At its Investor Day, Remitly forecasted high teens revenue growth for 2026, projecting revenues of $2.6 billion to $3 billion by 2028, implying a 20% compound annual growth rate over the next three years.
- Attractive Market Valuation: With a market cap of $2.9 billion, Remitly's stock trades at just 5 times its 2028 EBITDA forecast, suggesting potential for stock recovery if targets are met, making it an appealing option for investors.
Continue Reading
Remitly Rapidly Expands in the Remittance Market
- Market Potential: Remitly's rapid growth in the remittance market is evident as its revenue increased by 25% to $419.5 million in 2023, showcasing its strong competitive position in a global remittance market worth hundreds of billions annually.
- Profitability Improvement: Despite challenges, Remitly achieved a net income of $8.8 million in Q3, marking its first profitability under GAAP standards, indicating a gradual improvement in its margins.
- Future Growth Outlook: The company forecasts revenue to reach between $2.6 billion and $3 billion by 2028, implying a compound annual growth rate of 20%, reflecting strong long-term growth potential and market confidence.
- Product Innovation Drive: The launch of the Remitly One subscription service, which includes features like 'send now, pay later', further expands its market and enhances customer loyalty, demonstrating the company's strategic focus on product diversification.
Continue Reading