iShares S&P 1500 Index ETF (ITOT) and SPDR S&P Dividend ETF (SDY) both include Walgreens Boots Alliance Inc as underlying holdings, with the SPDR S&P Dividend ETF holding $286,151,558 worth of WBA shares.
“Dividend Channel S.A.F.E. 25” ranked Walgreens Boots Alliance Inc (symbol: WBA) due of these characteristics:
Dividends have been paid for at least two decades with no missed or lowered payments, and the stock has a solid return of at least a substantial yield and good DividendRank features. It also has an accelerating amount and an increasing dividend rate.
Walgreens Boots Alliance Inc pays a quarterly dividend of $1.91/share, with the most recent ex-date of the dividend being August 19, 2021. This company pays an annual dividend of $1.91/share, currently paid quarterly.
The research emphasized the relevance of WBA’s long-term dividend history in the graphic below.
Is Walgreens dividend safe?
If you’re looking for a safe, high-yielding dividend investment, MSC Industrial Direct, Walgreens Boots Alliance, and Ames National were all recommended by the editors of Forbes.
There is an updated Safest Yield Model Portfolio from New Constructs once a month. It’s on the lookout for companies paying out large dividends that it feels won’t be reduced in the future. A company’s free cash flow is an important issue.
Is Walgreens a safe stock to buy?
The dividend yield on Walgreens stock currently stands at 3.9 percent. An income-hungry investor in or near retirement should find this yield enticing, given its low payout ratio and the likelihood of future dividend growth. It has a dividend yield of more than three times that of the S&P 500.
Walgreens’ adjusted earnings-per-share compounded at 6.7 percent every year from fiscal 2011 to fiscal 2020. The company’s 46-year history of consecutive dividend hikes shows that it can thrive in a variety of economic climates (which makes the stock a member of the exclusive Dividend Aristocrats list).
We believe that the company’s recent reductions in profits per share will be reversed and that it will return to moderate growth. We predict Walgreens’ earnings per share to expand at a rate of 5% per year for the foreseeable future.
Walgreens has an expected growth rate of 5% and a dividend yield of 3.9%, resulting in an estimated annual return of 8.9% before valuation multiples shift.
A price-to-earnings ratio of roughly 10 or 11 is a reasonable assessment of Walgreens’ fair value.
The company’s forward P/E of 9.7 suggests that it is now trading at a reasonable price.
Shareholders will benefit greatly if the company’s stock price-to-earnings ratio returns to its historical average of approximately 15 in the next five years.
An increase of 6.4% per year in returns would be achieved if the P/E ratio were to return to its pre-crisis level of 15.
Over the next five years, Walgreens expects total returns to range from 7.0 percent to 15.0 percent every year.
Final Thoughts on WBA Stock
A 3.9 percent dividend yield and a decent price-to-earnings ratio make Walgreens an attractive investment option for investors looking for a significant return over the next five years.
As a bonus, the company has a low payout ratio and a long history of dividend increases. As a result, the stock price of WBA has an enticing reward to risk ratio.
Investors searching for a safe dividend, an above-average yield, and a high probability of dividend increases in the future might choose Walgreens stock.
As of now, the company’s stock is either properly valued (conservative) or slightly undervalued, despite the fact that the stock has appreciated over the course of this year. From now until the end of 2021, Walgreens has the potential to create high profits.
Sure Dividend was launched in 2014 by Ben Reynolds. Even today, Ben runs Sure Dividend to help individual investors develop high-quality income portfolios for themselves. Ben graduated from the University of Houston with a degree in finance, earning the honor of Summa Cum Laude. Since he founded Sure Dividend, his articles have appeared on Forbes and Fidelity as well as the Motley Fool.
Is WBA a good investment?
It is estimated that I will be ranked in the top 1.6% of all authors by the year 2021. According to TipRanks, my articles have a 75% success rate and an annual return of 24.9 percent.
Does Walgreens Boots Alliance pay dividends?
Walgreens Boots Alliance’s business continues to generate considerable free cash flow (FCF) to fund its dividend payout, despite the absence of a clear recovery in profitability. Ever since its founding in 1933, Walgreens Boots Alliance has paid quarterly dividends to shareholders, and in fiscal 2017 the company boosted that dividend to $1.88 per share, which it will pay in fiscal 2021. Annualized, the current quarterly dividend yields a dividend yield of 4.1 percent.
Is Walgreens a dividend king?
As a Dividend Aristocrat and Dividend Champion, Walgreens Boots Alliance (WBA) has grown its dividend payments every year since 1972.
Is Walgreens Boots a buy?
The bottom line is that the stock of WBA is currently a buy from a technical standpoint. The positive reversal day of Oct. 14 may be a good entry time for investors. A downward trendline was broken at that point.
What does Walgreens Boots Alliance do?
WBA, Inc. is an American holding corporation that includes retail pharmacy chains Walgreens and Boots as well as a number of pharmaceutical production, wholesale, and distribution businesses. Walmart purchased Alliance Boots’ 55 percent interest in Walgreens on December 31, 2014, resulting in the formation of the firm. $4.9 billion cash and 144.3 million common shares with a value of $10.7 billion were paid for the acquisition of the company. For $4.0 billion and 83.4 million common shares, Walgreens purchased 45 percent of the company in August 2012 with the option to purchase the balance shares within three years. After the transactions were completed, Walgreens became a subsidiary of the newly formed corporation. On the Fortune 500 list of the largest US corporations by revenue, Walgreens Boots Alliance is currently placed No. 19.
Walmart, Duane Reade, and other retail pharmacies in the United States, as well as Boots and other pharmacies across the world, make up the company’s three divisions (Alliance Healthcare).
On a per-share basis, the company earned $456 million in net earnings in fiscal year 2020, a fall of 2.5 percent from fiscal year 2019. As of August 31, 2020, the united business has operations in more than 25 countries. Alliance Boots, on the other hand, had a much more international business model than Walgreens before the merger.
On December 31, 2014, the firm was listed on the NASDAQ under the symbol WBA. After General Electric was removed from the Dow Jones Industrial Index on June 26, 2018, Walgreens Boots Alliance took its place. Nasdaq 100, S&P 100, and S&P 500 indices also include the corporation.
Is Walgreens Boots Alliance being sold?
AmerisourceBergen has finalized the sale of its Alliance Healthcare businesses to WBA for total consideration of approximately $6.5 billion, consisting of $6.275 billion in cash (subject to an usual net cash and working capital adjustment) and 2 million shares of common stock.
Walgreens Stock Still Appears Undervalued
In fiscal 2019, Walgreens had its highest adjusted earnings-per-share of $5.99. Its adjusted EPS for fiscal 2020 was $4.74 per share. In fiscal 2021, we predict adjusted EPS of $4.90 per share.
Using our fiscal 2021 earnings forecast, the company’s stock is currently trading at a P/E ratio of just 10.6.
For perspective, the company’s historical average P/E ratio over the past decade has been roughly 15 percent.
Walgreens has a price-to-earnings ratio of less than 11, which is too low for a company that values its shareholders. For 45 years in a row, Walgreens has raised its dividend payouts.
And dividend increase is expected in the future.
There is a 38 percent dividend payout ratio based on forecasted fiscal 2021 earnings.
Even if the company’s profits growth is static, the low payout ratio allows management to increase the dividend.
Using 2021 fiscal adjusted earnings-per-share expectations of $4.90, a return to Walgreens’ historical average P/E ratio of 15 would suggest a share price of $73.50.
An increase of 41% over current prices.
How long has Walgreens been paying dividends?
In the past, has the Walgreens-Boots Alliance consistently raised its dividend? For the past 46 years, Walgreens Boots Alliance (NASDAQ:WBA) has raised its dividend.
When did Walgreens stock split?
On February 4, 1991, WAG had its first split. For every share of WAG the shareholder had prior to the split, they now owned two shares. If you had 1000 shares pre-split, you would now have 2000 after the split. On August 9, 1995, WAG’s second split occurred.
What is CVS dividend?
CVS distributes a $2.00 dividend per share. 2.22 percent is the annual dividend yield of CVS’s dividends. CVS HEALTH Corp’s dividend is greater than the industry average of 1.34 percent, but lower than the US market average of 4.43 percent.
