Why Is Walgreens' Dividend Yield So High?
Walgreens (NASDAQ: WBA) is one of America's most recognizable drugstore brands. Up until this year, it has been a very dependable dividend-paying stock that increased its payout for investors annually for nearly 50 years, which would have distinguished it as a dividend King. It is a primarily brick-and-mortar business that also offers delivery services for prescriptions, personal care products, and groceries through its partnership with Postmates.
Walgreens' stock price fell by over 60% in the last year due to a number of issues. The company initiated a significant cut to its dividend yield by 48% in early 2024, it ventured into healthcare businesses such as CareCentrix and VillageMD that have yet to be profitable, and it will begin closing down stores as a cost-cutting measure, to name a few.
Walgreens is now trading at below $10 per share, and it is challenging for most investors to believe in their overall viability in the future. The company has been on a downward slope in terms of share price since 2015, peaking at approximately $96 per share.
Source Fool.com
