Is Walgreens a Great Dividend Stock?
Competition from CVS Health (NYSE: CVS), Amazon.com (NASDAQ: AMZN), and local pharmacies are increasing pressure on Walgreens Boots Alliance (NASDAQ: WBA), threatening the 118-year-old company that's paid a dividend for 346 consecutive quarters. Walgreens is paying a 3.31% forward dividend yield, an attractive return over the current 10-year Treasury rate of 1.8%, but investors are questioning whether Walgreens can keep growing against a changing business environment.
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The slow 37% drop from a 52-week high of $86.31 was caused in part by a threat to sales from Amazon's recent acquisition of PillPack in 2018 for $753 million. An at-home prescription drug delivery company, PillPack offers increased convenience to consumers, eliminating lines, and automating refills -- and it's free to consumers aside from the cost of the copayment. As Amazon has a Prime customer base over 100 million, the threat is significant for market dominators Walgreens and CVS.
Source Fool.com
