Walgreens Boots Alliance (NASDAQ: WBA) stock is trading at a 52-week low and its dividend yield is up to 6.4% right now. That's a mouthwatering payout for investors that can lead to significant recurring income for your portfolio. But before you consider investing in the pharmacy retailer for its dividend, there are three things you need to consider.

Walgreens is a dividend growth stock and has increased its payouts for 47 consecutive years. A few more rate hikes and it will join the ranks of the Dividend Kings, which have streaks that span at least 50 years.

But while Walgreens has been consistently increasing its dividend, it has been at a fairly modest rate over the past five years. From a quarterly dividend of $0.40 five years ago, it is at $0.48 right now, rising by 20% during those years and averaging a compound annual growth rate of 3.7%. It's a modest rate of increase and it has been slowing down; the company's most recent hike was just 0.5%.

Continue reading

Source Fool.com