Is Danger Lurking for Walgreens' Dividend?
Shares of pharmacy retailer Walgreens Boots Alliance (NASDAQ: WBA) are trading around their 52-week low. The stock has been declining after the company recently reported earnings. It has an inexpensive valuation and a high yield that now pays more than 5%.
Although the stock is a Dividend Aristocrat with a terrific track record, Walgreens's yield is higher than usual. This raises the question: Could the company's payout be in trouble, or is this an income stock worth considering for your portfolio right now?
At first glance, Walgreens looked like it had a rough quarter, with profits of $229 million for the period ending May 31, representing just a fraction of the nearly $1.2 billion it posted in the prior-year quarter. But the results weren't bad, as opioid-related expenses weighed down the numbers.
Source Fool.com
