Dividend stocks can be spectacular capital appreciation vehicles. The main reason is that companies that pay regular cash distributions tend to be mature, have durable competitive edges, and enjoy a loyal shareholder base. However, Dividend-paying companies can also face challenges that affect their earnings, share price, and yield.

Sometimes, companies can overcome these difficulties and promptly return to growth. More often than not, though, struggling dividend payers must rethink their capital allocation strategy, which can lead to a substantial reduction in the dividend.

That brings us to the subject of this article: Walgreens Boots Alliance (NASDAQ: WBA). With over 8,500 locations, Walgreens is one of the largest retail pharmacy chains in the United States. The company reports earnings via three segments: U.S. retail pharmacy, international, and U.S. healthcare.

Continue reading

Source Fool.com