Will Walgreens Increase Its Dividend in July?
Walgreens Boots Alliance (NASDAQ: WBA) is a dividend growth stock that currently pays an attractive dividend yield of 5.9% -- far higher than the S&P 500 average of 1.6%. The pharmacy retailer could be an appealing income investment because of the seemingly stable business it operates and its impressive dividend growth streak, which now stands at 47 years.
But the company has recently been pivoting to healthcare and spending billions on building out a new segment. Money is tighter and there's more risk around the dividend than there has been in the past. Last year, the company raised its dividend in July -- is that likely to happen again in 2023?
Walgreens' low profit margin (typically no more than a few percentage points) means that there can often be significant volatility in its earnings if there is an unexpected expense. For example, it has incurred expenses linked to opioid-related claims that have shattered its bottom line, resulting in a $3 billion net loss for the first six months of fiscal 2023 (ending in August).
Source Fool.com
