| Recently, we've received several Safety Net requests that all fall under the same field: finance. Those names are T. Rowe Price (Nasdaq: TROW), Western Union (NYSE: WU), and Peoples Bancorp (Nasdaq: PEBO). 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. |
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