Is CVS Health's Dividend Safe?
On Jan. 30, Walgreens Boots Alliance, a leading pharmacy chain, announced that it was suspending its dividend program, which had been active for over 90 years. This longtime dividend payer is suffering under the weight of financial troubles and had previously resorted to decreasing its payouts.
Walgreens isn't the only dividend-paying pharmacy chain whose financial results haven't been strong recently. CVS Health (NYSE: CVS) is in the same boat. Should investors be worried about CVS also decreasing or ending its dividend?
Walgreens has faced stiff competition in the past few years. Several companies, including Amazon, are offering what some consumers think is a better way to buy prescription medicines. This challenge has affected foot traffic in Walgreens stores and its revenue and earnings.
Source Fool.com
