DEERFIELD, Ill. - Walgreens Boots Alliance, Inc. (NASDAQ:WBA) has declared a consistent quarterly dividend of 25 cents per share, maintaining the amount dispensed in the previous quarter. Stockholders on record by August 21, 2024, will receive the dividend on September 12, 2024.
The declaration marks a continuation of Walgreens Boots Alliance's long-standing practice of paying dividends, which has been uninterrupted for 91 years, spanning 367 consecutive quarters. This consistency underscores the company's commitment to providing value to its shareholders.
Walgreens Boots Alliance, with its integrated approach to healthcare and retail, operates approximately 12,500 locations across the U.S., Europe, and Latin America. The company's history of community care extends over 170 years, and it employs more than 330,000 people worldwide. Its portfolio includes well-known consumer brands such as Walgreens, Boots, Duane Reade, the No7 Beauty Company, and Benavides in Mexico.
The company's focus extends beyond commerce, with an emphasis on contributing to healthy communities and an inclusive workplace. In fiscal 2023, Walgreens Boots Alliance received top scores from the Human Rights Campaign's Corporate Equality Index and the Disability Equality Index, and was named Disability:IN's 2023 Employer of the Year. Moreover, its sustainability efforts have been recognized through its inclusion in the Dow Jones Sustainability Indices (DJSI).
The information regarding the dividend and the company's ongoing commitments is based on a press release statement from Walgreens Boots Alliance. The company remains cautious about forward-looking statements, acknowledging risks and uncertainties that could affect future performance. Walgreens Boots Alliance does not intend to update any forward-looking statements post-release, irrespective of subsequent events or new information.
In other recent news, Walgreens Boots Alliance has been the subject of several analysts' adjustments. RBC Capital Markets reduced its price target on Walgreens shares from $22.00 to $13.00, maintaining a Sector Perform rating.
This followed the company's third fiscal quarter of 2024 results, which indicated ongoing challenges in the retail and pharmacy sectors. Similarly, TD Cowen, Truist Securities, and Mizuho Securities also reduced their price targets but kept their ratings.
Walgreens reported its third-quarter earnings for fiscal year 2024, revealing an adjusted earnings per share (EPS) of $0.63, which fell short of expectations. The company has revised its full-year outlook, now anticipating an adjusted EPS of $2.80 to $2.95 for fiscal year 2024.
In response to these challenges, Walgreens has announced several strategic measures, including accelerated store closures, reconfiguring retail experiences, and simplifying U.S. healthcare operations.
The company also plans to refine its business model and invest in sectors like Boots UK and VillageMD. As part of a broader turnaround strategy, Walgreens is considering closing up to 25% of its stores based on cash flow analysis.
Further financial details are expected to be shared by the company in October, providing additional insights into the company's progress and future plans. Despite the ongoing industry challenges, Walgreens remains committed to improving its financial performance and market position.
InvestingPro Insights
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) has maintained its quarterly dividend, reflecting a stable approach to shareholder returns despite the dynamic market environment. The company's market capitalization stands at approximately $9.74 billion, indicating its significant presence in the healthcare and retail sectors.
Analyzing the company's financial health, Walgreens Boots Alliance reported a robust revenue of $145.53 billion over the last twelve months as of Q3 2024, marking a growth of 6.92%. This growth trajectory is further evidenced by a gross profit of $26.75 billion, with a gross profit margin of 18.38% during the same period. These metrics showcase the company's ability to generate income and maintain profitability in its operations.
InvestingPro Tips suggest that investors should consider the company's PEG ratio, which stands at 0.02 as of Q3 2024, offering a perspective on the stock's value relative to its earnings growth. Additionally, there are 5 more InvestingPro Tips available for WBA, which can be accessed with the product that includes these tips. For those interested in a deeper analysis, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
Despite the positive revenue and profit margins, investors should note the significant dividend yield of 9.27% as of 2024, which is high relative to the market average. This could be indicative of the market's perception of risk or a higher-than-average reward for shareholders. Additionally, the fair value estimates from analysts and InvestingPro stand at $12.96 and $14.67 respectively, suggesting a potential undervaluation at the previous close price of $10.79.
As Walgreens Boots Alliance continues to navigate the evolving landscape of healthcare and retail, these financial metrics and expert insights can help investors make informed decisions regarding their investment in WBA.
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