Redditors Love These 5 Under-The-Radar Dividend Stocks

2. The Western Union Company (NYSE:WU)

Dividend Yield as of September 20: 6.57%

The Western Union Company (NYSE:WU) is a Colorado-based multinational financial services company that helps businesses and individuals transfer money around the globe. In August, Northland maintained its Outperform rating on the stock with a $22 price target, following the company’s Q2 results. The firm expects the company to grow its revenues in the upcoming quarters.

Redditors widely talked about The Western Union Company (NYSE:WU)’s cash flow and balance sheet which gives the company a prominent position among its competitors. However, the Redditors also showed concerns about its higher fees in comparison with its peers. The Western Union Company (NYSE:WU) has been raising its dividends consistently for the past seven years, with a five-year dividend CAGR of 6.53%, which places it as one of the best dividend stocks on this list. It currently pays a quarterly dividend of $0.235 per share, with a dividend yield of 6.57%, as recorded on September 20.

In the first half of 2022, The Western Union Company (NYSE:WU) generated $307 million in operating cash flow. The company had over $1.2 billion in cash and cash equivalents and $8.7 billion in total assets. During Q2 2022, the company returned $112 million to shareholders, $91 million of which represented dividend payments.

As per Insider Monkey’s Q2 2022 database, 21 hedge funds tracked by Insider Monkey owned stakes in The Western Union Company (NYSE:WU), down from 25 in the previous quarter. The consolidated value of these stakes is over $286 million, compared with $281 million worth of stakes owned by hedge funds in the preceding quarter.