WBA dividend yield calculator – Walgreens Boots Alliance Cuts Dividend To Fuel Growth

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Walgreens Boots Alliance ($NASDAQ:WBA), one of the “Dogs of the Dow” stocks, recently announced that it will be cutting its dividend in order to fuel its growth. The company, which operates a chain of drugstores throughout the world, is a leader in the retail pharmacy industry. Walgreens Boots Alliance has consistently provided investors with dividends since its inception, making the decision to reduce dividends a difficult but necessary step in order for the company to foster further expansion. Despite their success, Walgreens Boots Alliance is facing increasing competition from other pharmaceutical companies as well as online retailers such as Amazon. This has caused the company to make the difficult decision to reduce its dividend.

The company plans to use the additional funds to invest in new services and technologies, such as home delivery, in order to better compete with its rivals. Cutting its dividend is a bold move for Walgreens Boots Alliance, but one that could ultimately help the company in the long run. By investing in new services and technologies, the company could increase its market share and solidify its position as a leader in the retail pharmacy industry.

Dividends – WBA dividend yield calculator

Walgreens Boots Alliance has recently announced a cut in its dividend, citing a need to invest in growth initiatives. The last three years have seen an annual dividend of 1.92 USD per share, however this will now decrease. Therefore, if you are keen on dividends stocks, WALGREENS BOOTS ALLIANCE could still be an ideal choice.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for WBA. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for WBA. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for WBA. More…

Key Ratios Snapshot

Some of the financial key ratios for WBA are shown below. More…

Price History

On Monday, WALGREENS BOOTS ALLIANCE made the surprise announcement that it is cutting its dividend to shareholders in order to free up funds for future investments. This has had a direct effect on the company’s stock price, with shares opening at $21.1 and closing at $21.0, down by 0.9% from the previous closing price of 21.2. While investors may be disappointed by the news, the company is taking a long-term view in order to pursue growth opportunities. The dividend cut gives WALGREENS BOOTS ALLIANCE additional resources to invest in its core retail pharmacy business, as well as new areas such as digital health and wellness initiatives. By freeing up more capital, the company is hoping to drive long-term growth and create value for shareholders.

The company is also looking to expand its footprint in international markets and develop new partnerships to further its reach. Overall, WALGREENS BOOTS ALLIANCE is taking a strategic step towards pursuing growth opportunities in order to maximize shareholder value. While investors may be disappointed by the dividend cut, the company is taking a long-term view that should pay off down the road. Live Quote…

Analysis

At GoodWhale, we recently conducted an analysis on the wellbeing of WALGREENS BOOTS ALLIANCE. Our Star Chart showed that WALGREENS BOOTS ALLIANCE was strong in dividend, medium in profitability and weak in asset growth. We then evaluated their health score considering cashflows and debt, which resulted in an intermediate score of 6/10. This implies that WALGREENS BOOTS ALLIANCE is likely to be able to ride out any crisis without the risk of bankruptcy. Upon further investigation, we classified WALGREENS BOOTS ALLIANCE as a ‘cow’. This means the company has a track record of paying out consistent and sustainable dividends and may be of interest to income investors seeking more reliable returns. More…

Peers

Walgreens Boots Alliance Inc. operates in the retail pharmacy industry. The company’s main competitors are Clicks Group Ltd, Rite Aid Corp, and Hai-O Enterprise Bhd. Walgreens Boots Alliance Inc. is the largest retail pharmacy chain in the United States. The company operates over 9,000 stores in the United States and Puerto Rico.

– Clicks Group Ltd ($OTCPK:CLCGY)

Clicks Group Ltd is a South African company that owns the Clicks and Musica retail chains. It has a market capitalization of 3.74 billion as of 2022 and a return on equity of 41.88%. The company sells a variety of products including books, music, movies, and games. It also has a loyalty program called Clicks ClubCard.

– Rite Aid Corp ($NYSE:RAD)

Rite Aid Corporation is a drugstore chain in the United States. The company’s market cap is $228.4 million and its ROE is 240.91%. Rite Aid operates over 4,000 stores in 31 states and the District of Columbia. The company offers a wide variety of products and services, including prescriptions, health and wellness products, and photo finishing services.

– Hai-O Enterprise Bhd ($KLSE:7668)

Hai-O Enterprise Berhad is an investment holding company. The Company, through its subsidiaries, is engaged in the retail and direct selling of Chinese herbal products, Chinese proprietary medicines, health food, consumer products, and beauty and wellness products. It also provides management, marketing, and logistic services.

Summary

Walgreens Boots Alliance (WBA) is a large American retail pharmacy chain. However, in order to fuel growth and move forward with its strategic goals, WBA will need to reduce or even eliminate its current dividend. This move is expected to allow the company to invest more in digital initiatives, streamline operations, and focus on expanding its presence in international markets. WBA’s stock price might be affected by a dividend cut, but long-term investors may benefit from these investments due to increased earnings potential down the road.