Here's How Much You Could Make in 5 Years if You Invest $5,000 in Walgreens Stock Today
With Walgreens Boots Alliance (NASDAQ: WBA) stock, investors get a very tiny slice of the pie whenever someone buys their prescriptions from one of the company's pharmacies. Thanks to its practically ubiquitous storefronts and its key role in the U.S. healthcare system, the business is an obvious candidate for a relatively conservative and long-term passive income investment.
But how much would a $5,000 investment in Walgreens stock make if you held it for five years, and would it be a smart financial decision? Let's crunch a few numbers and estimate whether the stock will be a good passive income earner for your portfolio, or if its dividend is likely to get cut if times get tough.
Walgreens makes money largely by getting consumers to buy medicines and consumer health goods from its pharmacies. That means it can benefit from two long-term tailwinds: population growth and more medicines prescribed per person over time. Those long-lived tailwinds help create the stable conditions that allow Walgreens to pay and increase its dividend.
Source Fool.com
