10-year

10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

Once a decade discount

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

Walgreens Raises Quarterly Dividend 22.2%

June 20, 2012 | About:
Dividends4Life

Dividends4Life

53 followers
Walgreen Co. (WAG) operates a chain of drugstores in the U.S. WAG has never been shy when it comes to increasing it dividend. It has provided double-digit increases every year since 2003. With a yield below 3%, the increases are what attracted dividend growth investors. However, after today's increase, there may be a new class of investors looking at the stock.

On June 19, the company increased is quarterly dividend 22.2% to $0.27 cents per share. The dividend is payable Sept. 12, 2012, to shareholders of record Aug. 17, 2012. The increase raises the annual dividend rate $1.10 per share. The yield based on the new payout is 3.6%.

Walgreen's President and CEO Greg Wasson was quoted in the release saying, "We are increasing our dividend in line with our commitment to return cash to shareholders and consistent with our previously stated goal of a long-term dividend payout target of 30 to 35 percent of net earnings."

The company's stock dropped 5.85% Tuesday. The positive dividend news was not enough to offset in-line quarterly results with same-store sales dropping 6.6% due to the loss of Express Scripts (ESRX) business.

Even with this dividend increase, I am still not ready to buy. At least not until I fully understand the financial implications of the loss of its pharmacy benefit management contract with Express Scripts.

Full Disclosure: No position in the aforementioned securities. See a list of all my dividend growth holdings here.

Related Articles

- 7 Small-Cap, High-Yield Dividend Stocks

- 10 High-Energy, High-Yield Dividend Stocks

- 12 Dividend Stocks For A Powerful Income Stream

- 7 Dividend Stocks Sporting A Five-Star Rating

- 10 Dividend Stocks Ignoring The 4% Rule

About the author:

Dividends4Life
Visit Dividends4Life at:
http://www.dividend-growth-stocks.com/

Rating: 4.0/5 (8 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK