Sending Money & Old Habits

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My Aunt Millie, God bless her, still sends money orders. Money orders. She insists it’s safer, more “official.” I tried explaining Venmo, the little pinging sound it makes when someone sends you money, but she just narrowed her eyes and asked if it involved Russians. It’s this resistance to the new, this stubborn loyalty to the familiar, that reminds me of Western Union. For a long time, they were the ping. They were how you got money to someone across town, across the country, even across an ocean. Now? Well, now it’s apps and algorithms, and Aunt Millie is probably right to be suspicious.

The stock, frankly, has been a bit of a downer. Five years of annual losses averaging 10%. It’s the kind of performance that makes you wonder if they’re still telegraphing messages, just not very good ones. But, and this is where it gets interesting, there’s a dividend. A hefty one. Which, in the current climate, feels a bit like finding a twenty in an old coat pocket.

A Heavenly Dividend (Maybe)

Ten percent. That’s the dividend yield. It’s enough to make you almost forget about the downward trend, to briefly entertain the fantasy of retiring to a small cottage and subsisting entirely on dividend checks. Of course, that’s ridiculous. But still. The payout ratio is only 41%, which, in finance speak, means they’re not giving away the farm. They’re not quite at the point of promising you the moon and then sending a postcard. Though a cut is always possible. Business isn’t exactly booming, and a 50% cut would still leave you with a respectable 5%. It’s like losing half your savings, but being mildly pleased with the remaining amount.

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Impressions & Staying Power

They describe themselves as a global money movement, payments, and digital financial services company. It sounds impressive, if a little breathless. They’ve been around since 1851, which is before indoor plumbing was common. Before electricity. Before anyone had a good idea what they were doing. They started with telegraphs, then money orders, and now they’re trying to compete with companies that can transfer money with a swipe of a finger. It’s a bit like watching your grandfather try to operate a smart TV. He’s determined, but the outcome is rarely elegant.

Their last quarter was…mixed. Revenue down 5%. But the CEO, Devin McGranahan, talked about strengthening consumer services and accelerating their transition to a digital-first model. It’s the corporate equivalent of saying you’re “working on yourself.” You hope it means something good, but you’re prepared for disappointment.

The stock price is attractive, though some call it a value trap. A forward P/E ratio of 5.3, well below its five-year average. It’s like a really nice sweater on clearance. You want to believe it’s a bargain, but you suspect there’s a hole somewhere.

It’s Not All Roses

Look, Western Union isn’t a no-brainer. Your brain is required. The current economic climate isn’t exactly friendly to immigrants, many of whom send money home to their families. That’s a significant headwind. And then there’s the competition. Fintech companies are innovating at a dizzying pace. They’re launching new features, lowering fees, and making it easier than ever to send money. It’s a relentless onslaught. Western Union is trying to keep up, but it’s like asking a bicycle to race a Formula One car.

So, consider Western Union for that dividend. But dig deeper. Do your research. And maybe, just maybe, send Aunt Millie a Venmo request. She might still be suspicious, but at least you’ll have tried.

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2026-02-24 04:12