Core Viewpoint - Western Union, despite its recent stock performance, has potential for recovery and growth due to its profitability, turnaround plans, and high dividend yield [1][2][10]. Group 1: Financial Performance - Western Union has maintained regular quarterly dividend payments of $0.235 per share, resulting in a forward dividend yield of 10.3% [1][6]. - The company has consistently reported positive GAAP earnings, with a dividend payout ratio around 55%, indicating that earnings are sufficient to cover dividends [5][6]. - Over the past five years, total returns for Western Union have declined by 40%, contrasting with a 92% gain for the S&P 500 [2]. Group 2: Turnaround Strategy - Western Union is transitioning into a digital-first payments company and expanding into consumer services such as travel money, bill payment, and prepaid card services [7]. - The company is acquiring International Money Express, which is expected to be immediately accretive to shareholders, and is entering the stablecoin market with the planned launch of the U.S. Dollar Payment Token (USDPT) [8]. - Management anticipates a 20% revenue growth from 2026 to 2028, with projected earnings between $2.15 and $2.45 per share, which could significantly impact the stock price [9]. Group 3: Investment Potential - If the turnaround is successful, shares are expected to rise in line with increased earnings, and a return to moderate growth could lead to a rerating of the stock [10]. - Currently, the stock trades at 5.1 times forward earnings, and if it receives a higher multiple of 7.5 times earnings, the stock price could potentially double within two years [11].