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This Dow Jones Stock Just Slashed Its Dividend By 48%. Here's Why It Could Benefit Investors

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This Dow Jones Stock Just Slashed Its Dividend By 48%. Here's Why It Could Benefit Investors: https://g.foolcdn.com/editorial/images/760507/chart-stress-investor-financial-future-1200x798-36b7a2e.jpg

Walgreens Boots Alliance (NASDAQ: WBA) caught the market by storm last week when it slashed its dividend by 48%, from $0.48 per share per quarter to $0.25. Now, Walgreens stock yields around 4%, which is still respectable, but far lower than the high yield investors were used to.

You may be wondering why a lower dividend could be a good thing. After all, why would investors ever ask a company to give them less money? Here's why Walgreens' cut was the right decision, a look at how past dividend cuts helped other companies, and whether or not Walgreens is a dividend stock that's worth buying now.

Image source: Getty Images.

Source Fool.com

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