Analysis – The Western Union Co. Increases Dividend by 24%

WU

The Western Union Company announced a regular quarterly dividend of $0.155, a 24 percent increase from the prior rate of $0.125 per share. The dividend will be paid at the new higher rate on March 31, 2015, to shareholders of record at close of business on March 17, 2015.

Date Quarterly Dividend
3/17/2015 0.155
12/12/2014 0.125
9/11/2014 0.125
6/12/2014 0.125
3/13/2014 0.125
12/13/2013 0.125
9/12/2013 0.125
6/12/2013 0.125
3/13/2013 0.125
12/13/2012 0.125
9/20/2012 0.1
6/13/2012 0.1
3/14/2012 0.1
12/15/2011 0.08
9/22/2011 0.08
6/15/2011 0.08
3/16/2011 0.07
12/16/2010 0.07
9/30/2010 0.06
6/16/2010 0.06
3/17/2010 0.06

Analysis of Valuation of Western Union Company (Symbol WU).

Western Union is trading below the average of its price/book value (P/BV) range.  Western Union is trading above its average historical dividend yield. 

Price 02/11/15 % Yield 5 Year Div. Growth Rate BV    2014 P/BV Ratio 10 yr P/BV Low 10 yr P/BV  High 5 yr max Yield % 5 yr lowest Yield %
$18.30 2.80% 13.5% 3.00 5.97 3.60 9.50 3.28% 0.37%
Western Union Company Dividend Yield Chart (Click to enlarge)

WU

Explanation:  Dividend growth financial stocks may be valued upon historical relative price/book value and current yield analysis. Dividend financial stocks trading at a low historical price/book value (P/BV) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/BV ratio stocks.  Max P/BV price target is based upon company reaching its highest historical P/BV ratio.  Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years.

Further information on evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

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