Dividend Idea Of The Week: Western Union (NYSE:WU) - A Major Player In Global Payment Services With Over 4% Yield And Potential To Double

Weekly Dividend Stock Ideas Researched by The Dividend Yield Weekly. Our weekly Dividend Idea is the global payment services stock Western Union (NYSE:WU). 

The money transfer company was sold-off by many investors after the disappointing the third-quarter results of the company. The company announced a 1% increase in sales and raised dividends by 25 percent and increased share buybacks to $750 million, but lowered the guidance in accordance to lower second-half revenues and a higher competition. The stock dropped around thirty percent and the current dividend yield after the dividend hike is over 4% at a P/E ratio of less than 7. Morningstar analysts estimated the fair value of the company at $25.0 which represents a potential to double.