Two investors look at the same jagged line and see two entirely different stories – fear for one, quiet opportunity for the other. Western Union‘s (NYSE: WU) chart is one of those Rorschach tests.

The stock crested near $12 in early 2024, faded through the rest of the year, and spent most of 2025 trying to decide whether it still belongs in a faster-moving world.

Yet beneath that messy picture is a company changing in ways the market hasn’t fully caught on to. That tension – the reputation of a fading legacy player versus the reality of a business adapting more quickly than it gets credit for – is what pulled me into Western Union this week.

Western Union is still best known for its global remittance network, the financial lifeline for millions of families spread across borders. But the company is steadily reshaping itself.

Management’s “Evolve 2025” strategy leans on something simple but smart: using the company’s enormous retail footprint to funnel customers into better digital experiences while building new services that make Western Union more than a one-trick money transfer company.

It’s slow, steady modernization rather than a flashy reinvention.

The numbers from the third quarter show both the friction and the progress. Revenue landed at just over $1 billion, basically flat from last year. Adjusted revenue dipped slightly, and North America retail continues to slide as customers shift to mobile and low-fee competitors.

But that’s only half the story.

The Consumer Services segment, which includes wallets, bill pay, and travel money, exploded 49% year over year. Digital transactions climbed 12%, marking the eighth straight quarter of healthy growth. Both GAAP and adjusted operating margins improved to 20%, a sign that the company is becoming more efficient even as it invests in its shift toward digital.

Cash generation remains the anchor. Year to date, Western Union has produced more than $400 million in operating cash flow and returned over $430 million to shareholders through buybacks and dividends.

This isn’t a company gasping for air. It’s a company trimming fat and redirecting energy.

The Value Meter focuses on what a business actually produces, not the story told around it. And the cash numbers here speak loudly.

Western Union’s enterprise value-to-net asset value ratio is 4.95, a small premium to the broad universe’s 3.80. That’s not ideal, but the next metric wipes away most of the concern: Free cash flow-to-NAV sits at 13.21%, compared with the universe’s 1.13%.

That’s not just “better.” It’s in a different league. Western Union generates cash almost 12 times more efficiently than the typical company.

Its 12-quarter free cash flow consistency also edges out the universe average, showing a pattern of steady improvement rather than erratic spurts.

Meanwhile, the stock looks like it’s been sentenced to the penalty box. It’s the kind of chart you see when investors doubt a company’s long-term relevance. But doubt isn’t the same as decline, and the fundamentals don’t match the pessimism baked into the price.

Western Union isn’t morphing into a high-growth fintech, and it doesn’t need to. It just needs to keep expanding its higher-margin services and nudge more of its customer base toward digital.

If it does that – and the past year suggests it’s already doing it – the market’s expectations look too low.

The Value Meter rates Western Union as “Slightly Undervalued.”

What stock would you like me to run through The Value Meter next? Post the ticker symbol(s) in the comments section below.

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So, while Chief Income Strategist Marc Lichtenfeld is out this week, I thought it would be fun to shake things up a bit and review all three of these stocks at one time – pitting them against one another to find the ultimate champion.

Let’s start by looking at T. Rowe Price, an investment management firm similar to Vanguard or Fidelity. A huge amount of the company’s income comes from investment advisory fees, and revenue has seen a steady increase in the past year. At current prices, the stock yields 4.8%.

Free cash flow took a massive hit in both 2022 and 2023. However, 2024 saw a bounce back with a 38.5% gain, and free cash flow is projected to nearly double this year.

A major downside is that T. Rowe Price’s dividend payout ratio currently sits at 90%, which is above our threshold of 75%. The good news is that the company has increased its dividend every year for the last decade, earning it some brownie points.

Next, let’s talk about Western Union. This company specializes in money transfer, allowing its customers to securely send money to people or businesses across borders. The company covers the areas that banks can’t by acting as a liaison for those that don’t have a bank account or who need cash immediately. (A bank wire transfer can take one to three days.)

Turning to the safety of its dividend, we see a couple of red flags that could jeopardize its attractive 11.2% yield.

First off, Western Union’s free cash flow has been all over the place. It peaked in 2021 at $900 million but has been bouncing around ever since. Free cash flow in 2024 was down 50% from the previous year and down 60% from three years prior.

On top of that, Western Union announced in August that it will be acquiring International Money Express (Nasdaq: IMXI), which will result in a major hit to the company’s free cash flow.

The company’s dividend payout ratio, just like T. Rowe Price’s, is sitting above our 75% threshold at 90%.

Finally, let’s look at Peoples Bancorp, a company that provides banking services from Ohio to Maryland. The stock yields a solid 5.5%.

The company’s biggest revenue source is net interest income, or NII – the difference between the money it earns from loans and investments and the interest expense it pays on deposits. We will be using that metric to measure free cash flow.

NII is up both on the year and over the last three years. The forward-looking estimates predict an even larger increase this year.

The company’s payout ratio currently sits at 16%, well below our 75% threshold. Its balance sheet looks stellar as well.

On top of all of that, Peoples Bancorp has increased its dividend every year for the past 10 years.

Now, it’s time to reveal the results of our first-ever Clash of the Finance Titans (it’s a working title).

In third place, we have Western Union with a grade of “F.”

Based on our scoring system, the company’s dividend has a high risk of being cut. I’m concerned about its inconsistent cash flow and high payout ratio.

In second, we have T. Rowe Price with a “C.”

There’s some risk here, but the company’s cash flow growth projections and strong dividend track record should help.

And in first place, we have Peoples Bancorp with a mighty “A.”

This is one of the safest dividends I’ve ever seen. I’d even go as far as to say that you’re more likely to see a dividend raise than a dividend cut.

Western Union Dividend Safety Rating: F

T. Rowe Price Dividend Safety Rating: C

Peoples Bancorp Dividend Safety Rating: A

If you enjoyed this format, let us know by either commenting below or sending us an email here.

And, as always, feel free to send us more companies whose dividends you’d like us to review.

You can also take a look to see whether we’ve written about your favorite stock recently. Just click on the word “Search” at the top right part of the Wealthy Retirement homepage, type in the company name, and hit “Enter.”

Also, keep in mind that Safety Net can analyze only individual stocks, not exchange-traded funds, mutual funds, or closed-end funds.

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