The Western Union Company (NYSE:WU) has had a rough year so far, with the stock down nearly 20% since the start of 2026. The decline has pushed its dividend yield into double-digit territory and raised a bigger question for income investors: can Western Union keep paying its current dividend? The company has not raised its dividend since 2021.
Its quarterly payout has stayed at $0.235, or $0.94 annually, since then. To be precise, Western Union did not cut its dividend in 2021. It last increased the quarterly payout to $0.235 that year and has kept it unchanged ever since.
There is still a reasonable case for The Western Union Company (NYSE:WU) maintaining its payout. The company continues to generate significant cash, while management has been working to reduce costs and improve the business. Its digital operations could also provide a source of growth as consumers increasingly move away from traditional money-transfer channels.
Valuation is one of the strongest points in the bull case. The stock is trading at a deeply discounted forward price-to-earnings multiple, with the forward P/E at just 4.42x. That is well below the broader financial sector and suggests the market has already priced in a lot of the company's challenges.
If Western Union can stabilize earnings, keeping the $0.235 quarterly payout unchanged could signal confidence in its balance sheet. For shareholders willing to accept some near-term volatility, the current valuation and income are difficult to ignore. The dividend also has some history behind it.
Western Union has maintained the $0.235 quarterly payment for more than five years, including during periods when the business was under pressure. If management can stabilize earnings and cash flow, maintaining the dividend could help rebuild investor confidence. At the current share price, the income is certainly attractive.
Extract — continue reading at the source.
