This pharmacy/clinic chain continues to struggle, but the shares are undervalued and pay a current annual dividend yield of 4.72%, paid quarterly.
Walgreens Boots Alliance, Inc. (WBA)
From Sure Dividend Newsletter
Walgreens Boots Alliance is a Dividend Aristocrat with 45 consecutive years of dividend increases. (Note from Nancy: A Dividend Aristocrat is a company in the S&P 500 that has paid and increased its base dividend every year for at least 25 consecutive years.)
The stock offers investors an above market yield. The company’s stock never yielded above 3.7% in at least the last 30 years prior to 2020. The company’s 10-year historical average dividend yield is 2.4% for comparison.
Walgreens appears undervalued at current prices. And we expect the dividend to continue to increase as we project 5% annualized earnings-per-share growth for this blue-chip corner store pharmacy.
Walgreens offers investors a high yield, a bargain valuation, likely continued dividend growth, and dividend safety based on its reasonably low payout ratio of just 39% using fiscal 2020 adjusted earnings-per-share.
Disclosure: I am long WBA.
Ben Reynolds, Sure Dividend Newsletter, suredividend.com, support@suredividend.com, 800-531-0465, December 15, 2020