Will 3M's High-Yielding Dividend Face the Same Fate as Walgreens' Once-Mighty Payout?
This year marked the end of an era for Walgreens Boots Alliance (NASDAQ: WBA). The pharmacy and retail giant slashed its dividend by 48% to start this year, ending a streak of 47 straight years of increases. Before that reduction, the company had one of the highest dividend yields in the S&P 500 at around 7.5%.
Walgreens' decision to throw in the towel on its long-standing dividend growth streak might make 3M (NYSE: MMM) investors nervous. The industrial giant also pays a big-time dividend (currently yielding 5.7%) that it has grown for more than 60 consecutive years. Here's a look at the likelihood that 3M's payout will face the same fate as Walgreens' dividend in 2024.
Walgreens' financial situation has deteriorated in recent years. During its last fiscal year, the company's earnings per share declined more than 20%. Meanwhile, its operational cash flow slumped by over $1.6 billion to less than $2.3 billion. That left it with only $665 million in free cash flow after funding its capital spending ($1.5 billion less than the prior fiscal year).
Source Fool.com
