Western Union is probably one of the best examples in my portfolio. Dividends are being paid out again today... fortunately Western Union does this on a quarterly basis. 💵
-> Dividend yield: approx. 11%
-> P/E ratio: approx. 5.5
When I joined the company, the fundamentals were only marginally "worse". Almost too good to be true. High dividend yield and high price potential ... that was my thought at the time. 📈
This bet didn't work out. Today, the dividend yield is even higher and my share price has fallen by around 25% (although fortunately this is somewhat offset by the dividend received).
Nevertheless, I have learned to look twice at high dividend yields. There is nothing free in the market. As far as Western Union is concerned, I still can't figure out what justifies this fall in the share price. I therefore continue to hold the share and hope for a bottom soon.
You don't just have winners $WU (-2,58%) ... 😉
