WBA - Walgreens: Another Dividend Cut Could Be Coming Soon (Rating Downgrade)

2024-05-30 07:00:00 ET

Summary

• Walgreens has faced headwinds and cut its dividend by nearly 50% earlier this year.
• The company's recent earnings showed some positive signs, but headwinds persist, which could lead to an additional dividend cut by the end of the year.
• The dividend coverage is a concern as operating cash flow and free cash flow were negative in the first half of the year.
• Their P/E of less than 5x is the lowest level seen since 1998, giving WBA an attractive dividend yield over 9%.

Introduction

Walgreens ( WBA ) was once a stock I held in my portfolio, excited about the company's turnaround story they started a few years ago. But since then, it hasn't turned out to be great for the company as they have faced headwinds, forcing them to cut the dividend earlier this year....

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