Western Union rated strong buy with 10% dividend yield and 20% shareholder yield despite Q1 EPS miss.

Western Union remains a strong buy at 5x forward earnings, offering a 10% dividend yield and aggressive share buybacks that create a 20% combined shareholder yield. The Q1 earnings per share miss was due to temporary factors like vendor incentives, foreign exchange losses, and seasonal weakness in Travel Money. Management reaffirmed full-year 2026 EPS guidance of $1.75–1.85. The upcoming Intermex acquisition, expected to close in Q2 2026, is projected to drive growth in the second half, stabilize U.S.-Latin America corridors, and deliver $30 million in synergies. Western Union's buyback program retires 10% of shares annually, supporting earnings per share even if overall earnings remain flat, while maintaining a sustainable dividend payout ratio of 52%.