Walgreens Doesn't Need to Cut Its Dividend, It Needs to Completely Suspend It
Walgreens Boots Alliance (NASDAQ: WBA) is a stock that is in deep trouble. It isn't trading just at 52-week lows, it's trading at levels it hasn't seen in more than 20-plus years. The company's new CEO, Tim Wentworth, faces an uphill battle trying to turn things around for the struggling business, as well as convincing investors it's worth buying shares of the pharmacy retailer.
Walgreens cut its dividend this year, but I believe the pharmacy specialist should outright suspend it, because that could play a big role in the company's overall turnaround.
Walgreens isn't a stock that should be paying a dividend. It's normally when a business is doing well and has strong enough financials to support recurring and regular distributions to shareholders that it makes sense for it to pay a dividend. But with Walgreens, that just isn't the case anymore.
Source Fool.com
