Western Union's Dividend Now Yields a Whopping 13.5%. Here's Why I'm Buying Its Competitor Instead.
The innovator's dilemma is hitting hard in the remittance space.
Overview
Western Union (NYSE: WU) has been around since 1851, and this may be the lowest point it has ever experienced in its history. Its shares are down 75% from their highs, reaching a 21st-century low as its physical remittance business is rapidly being disrupted by digital peers.
Many investors look at Western Union and its dividend, which now yields 13.5%, as an attractive value stock to bet on. However, the opposite is true. Western Union looks like a prototypical value trap, while its competitor, Remitly Global (NASDAQ: RELY), looks like a great stock to buy for the long haul.
Details
Here's why I'm betting on Remitly Global and avoiding buying Western Union's 13.5% dividend yield.
Source
Originally published at www.fool.com.