Western Union (WU) is showing signs of a potential turnaround after years of declining stock performance, which saw its value drop by roughly two-thirds since 2020. The company has faced significant competition from internet-based money transfer services that have undercut its pricing and siphoned off customers. However, Western Union has invested in modernizing its technology and enhancing its online offerings while maintaining its strong physical presence, which could help it regain market share.
The implications for investors are noteworthy. Western Union’s adjusted operating margin has seen a steady increase, rising from 17% in Q4 2024 to 20% in the second half of 2025. This improvement has caught the attention of the market, with the stock price increasing about 10% over the past six months, contrasting with a slight decline in the S&P 500.
For those considering Western Union, the stock offers a compelling 10% dividend yield, although it remains better suited for aggressive dividend investors as the turnaround is still in its early stages.
Source: fool.com