Why These 10 Dividend Stocks Are Declining?

1. The Western Union Company (NYSE:WU)

Annual dividend yield: 9%

Ex-Dividend Date: Mar 17, 2025

Number of Hedge Funds: 27 (2024 Q3)

Quarterly dividend amount:  $0.235

The stock price of The Western Union Company (NYSE:WU) continued its decline, dropping by over 7% in the past three trading days, 17% in the past year, and just over 60% in the past 5 years. Despite the attractive annual dividend yield of 9%, the asset has been losing its value consistently as the analysts share a consensus, “Avoid,” with an average price target of $12.11, indicating an upside of 16%. The target price decreased by 6% compared to last month as the company posted a 3% decline in its 2024 fiscal revenue. Cheaper and faster alternatives, such as PayPal and Wise, have captured significant market share. The company’s high debt limits its ability to invest in new technologies or acquire new companies.

The Western Union Company (NYSE:WU) is also fundamentally weak despite having almost three times higher average yield than the financial industry (3.18%). The average price recovery from the dividend announcement took 14.9 days, further signaling the weak fundamentals and a negative market sentiment regarding the stock. Therefore, despite the attractive dividend yield, investors should be wary of taking a long position in the stock.

Overall The Western Union Company (NYSE:WU) ranks first on our list of the dividend stocks that are declining. While we acknowledge the potential for WU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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