For example, Walgreens acquired over 1,900 Rite Aid (RAD) stores, three distribution centers, and related inventory, for $4.375 billion. We view the stock as significantly undervalued and rate the stock a buy. With such a massive global footprint, it is very challenging for a competitor to compete on the same scale as Walgreens. Walgreens remains a strong company, with a great brand and positive growth prospects moving forward. But due to Walgreens’ slower growth and current headwinds, we have a 2025 price-to-earnings ratio target of 12 for the stock. Please send any feedback, corrections, or questions to support@suredividend.com. Dividend Aristocrat #2: Walgreens Boots Alliance Inc (NASDAQ: WBA) The 52-week low for Walgreens is $36.65 and is currently trading just over $40. WBA Dividend History & Description — Walgreens Boots Alliance Inc. Walgreens Boots Alliance is a holding company. And, for retirees, dividend growth stocks can help replace employment earnings. It’s simple, the companies in the list must have increased their dividends every year for 25 years. Not only are investors worried about a sluggish environment for brick-and-mortar retailers, but the threat of Amazon entering the healthcare industry is a constant overhang. Walgreens has one of the world’s largest global wholesale and distribution networks, with roughly 400 distribution centers that supply more than 230,000 pharmacies, doctors, health centers, and hospitals. A Dividend Aristocrat is a group of more than five dozen S&P 500 companies that have raised their annual dividend for at least 25 consecutive years. Furthermore, there are significant cost synergies to accelerate earnings growth from the acquisition. It created a German wholesale joint venture with McKesson (MCK) and formed a group purchasing organization with Kroger (KR) as it believes these strategic partnerships will help it grow its market share and improve its long-term growth outlook. We expect it to continue allocating billions of dollars into share repurchases when the current authorization expires. This represents nearly 15% of the current market capitalization of the stock, meaning the buyback could be a significant boost to EPS. Updated on January 14th, 2020 by Samuel Smith. Next up is pharmacy giant Walgreens Boots Alliance (WBA). For example, Walgreens acquired over 1,900 Rite Aid (RAD) stores, three distribution centers, and related inventory, for $4.375 billion. While the company continues to be plagued by sluggishness and growing competition in the space, there should be plenty of room for growth next year and beyond, thanks to sales growth, strategic initiatives, and the continued integration of the Rite Aid acquisition. Since the 2008 financial crisis, the S&P 500 Dividend Aristocrat list has evolved as follows: Unsurprisingly, the dividend aristocrats have been income investor favorites. If you thought that becoming a Dividend Aristocrat was difficult, wait until you hear what it takes to be a Dividend King. Click here to download your Dividend Aristocrats Excel Spreadsheet List now, 2008 earnings-per-share of $2.17 (6.9% increase), 2009 earnings-per-share of $2.02 (7.2% decline), 2010 earnings-per-share of $2.16 (6.9% increase). Jan. 1, 2021 12:07 PM ET | Includes: AbbVie Inc. (ABBV), AFL, APD, BDX, CB, CVX, LOW, MKC, NUE, TGT, WBA. Specifically, the U.S. is an aging population. To qualify for membership in the S&P 500 Dividend Aristocrats index, a stock must satisfy the following criteria: As they age, consumers will have higher demand for healthcare products and prescriptions. In addition, its international segment saw a 2.7% decline in sales due to ongoing soft market conditions in the U.K. By Sure Dividend Jan 1, 2018, 9:25 am EST December 28, 2017 It is an equally weighted company index. Walgreens has a current share price of ~$54 and a midpoint for adjusted earnings-per-share of $6.00 for fiscal 2020. Walgreens has increased its dividend for 44 years in a row. View on seekingalpha.com. It operates retail pharmacy store chain in the United States. This is a select group of 57 companies in the S&P 500 Index with 25+ consecutive years of dividend increases. Walgreens Boots Alliance is suffering from declining margins and the additional competition by Amazon entering the market is also not great. Dividend aristocrats are public companies that have consistently raised … Plus, due to the share price decline over the past year, Walgreens stock yields 3.4% today. Hundreds of Rite Aid stores were optimized in 2018 and 2019. The company has an impressive track record of increasing dividends by … Dividend Aristocrat Walgreens Boots an Attractive Buy Right now, Walgreens stock is significantly undervalued. The Retail Pharmacy International segment offers retail stores, which sells products of brands No7, Boots Pharmaceuticals, Botanics, Liz Earle, and Soap & Glory. This list of stocks is officially tracked by the ratings company. For the Dividend Aristocrats, they need to participate in the economy of the United States, but not be headquartered here. What are Dividend Aristocrats? Plus, Walgreens will generate returns from earnings growth and dividends. The firm sells and markets its products under brands such as Walgreens, Duane Reade, Boots and Alliance Healthcare. Investor sentiment has been subdued in recent years, due to fears of rising competition from online retail giants like Amazon (AMZN). Current Dividend Per Share Annualized: $1.87 Read with Free Trial. The Pharmaceutical Wholesale segment supplies medicines, other healthcare products and related services to pharmacies, doctors, health centers, and hospitals. Dividend.com: The #1 Source For Dividend Investing. The rapid growth of e-commerce has put pressure on brick-and-mortar retailers. As a result, we believe Walgreens stock is an attractive buy for 2020. The Dividend Aristocrats are stocks with 25+ years of rising dividends. Quality blue-chip bargains are always on sale, and here's how to find them. Walgreens’ most important catalyst in the U.S. is to grow through new stores and customers. Excluding acquisitions, pharmacy sales and prescriptions still grew 2.5% and 2.8%, respectively. There are about 81 stocks on the list as of October 30, 2020. www.moneyinvestexpert.com Copyright 2011-2020, Dividend Aristocrat Walgreens Boots Alliance…. Dividend Aristocrat Walgreens Boots Alliance Inc. (WBA) is a pharmacy led health and wellbeing company. Buying shares of a dividend aristocrat ETF can help you invest in dividend aristocrat stocks more easily and cheaply. It followed up this performance with over 20% earnings growth in 2011. Share buybacks will also help fuel Walgreens’ future earnings growth. The company was founded in 1901 and is headquartered in Deerfield, IL. On a year-to-date basis, the Dividend Aristocrats have returned … ... › Dividend Aristocrats › Dow 30 › Dividend Champions › Most Watched. With 41 straight years of dividend increases, Walgreens Boots Alliance (WBA) is a favorite among many dividend growth investors and a member of the select group of 51 dividend aristocrats in the S&P 500. TradingView. The most recent quarter showed that the company continues to struggle with earnings-per-share growth, but also is taking steps to secure its long term growth prospects through strategic investment. Consider this: Trading at $70.74 per share at the time of this writing, Walgreens Boots Alliance has a price-to-earnings (P/E) ratio of 13.5 times. It has accomplished this through acquisitions. Shares of Walgreens declined 24% in the past one year, and it was the worst-performing Dividend Aristocrat of 2019. NOBL has generated total returns of 16.0% through August 2. A Dividend Aristocrat is a group of more than five dozen S&P 500 companies that have raised their annual dividend for at least 25 consecutive years. If … ET Find more details information on this page! Walgreens Boots Alliance, Inc. engages in the provision of drug store services. Walgreens Is An Anti-Bubble Dividend Aristocrat Set To Soar. Dividend Aristocrats are companies that have increased their dividends annually. The index is equally weighted, and rebalanced every quarter. Hundreds of Rite Aid stores were optimized in 2018 and 2019. Walgreens Is A Dividend Aristocrat. Dividend Retirement Portfolio up 7.32% in November, Defensive Aristocrats update December 2020, 10 Dividend Aristocrats to Buy in December according to Wall Street, Two new dividend Aristocrats for 2021 and one at risk. The company has a 5-year dividend growth rate of 6.5% with a 13-year high dividend yield of 4.77%. For example, Walgreens suffered only a slight decline in earnings-per-share during the Great Recession: Walgreens grew earnings-per-share from 2007 to 2010. But 5 years or more of dividend growth does not by itself qualify a stock as a Canadian Dividend Aristocrat. It makes Walgreens a Dividend Aristocrat. This could be a significant event for shareholders, if the deal transpires. #1 - Clorox (NYSE:CLX) Clorox (CLX) - I’m going to start with a couple of stocks that should give investors some capital gain in the short term in addition to its dividend. You can see a full downloadable spreadsheet of all 57 Dividend Aristocrats, along with several important financial metrics such as price-to-earnings ratios, by clicking on the link below: Click here to download your Dividend Aristocrats Excel Spreadsheet List now. We use cookies for a number of reasons, such as keeping our website reliable and secure, personalising content and ads, providing social media features and to analyse how our website are used. Since Walgreens and Rite Aid have nearly identical operations, Walgreens can eliminate duplicated functions across the business. As a result, the stock trades for a price-to-earnings ratio of 9.0. 2020 was historical by many standards. If shares were to expand to meet our target valuation, investors would see an additional 5.9% added to annual returns over the next five years. Dividend Stocks Best High Dividend Stocks 2001-2021 The DividendRank Top 25 The Top 10 DividendRank'ed DJIA Components Feel-Good Income: 25 Socially Responsible Dividend Stocks Top Dividend Stocks 2011-2021 This is an excellent projected rate of return, and indicates that Walgreens stock offers a mix of all attractive qualities. Looking out further, Walgreens should continue to grow earnings for the long-term, due to very favorable macro-economic conditions. Investors are betting on Walgreens achieving substantial synergies from its recent acquisitions, which could help drive its earnings growth rate into the high-single digits or low double-digits. This includes the following 7 new additions. This helps earnings stay afloat, even during recessions. The Walgreens Boots Alliance (WBA) dividend has been paid continuously since 1972 and increased for 45 consecutive years; qualifying the company as a Dividend Aristocrat and Dividend Champion. The Dividend Aristocrats List consists of the S&P 500 companies that have increased their dividend for 25 consecutive years or more. The stock is even a holding in Bill Gates’ dividend portfolio here. The “dividend aristocrats” are an elite group of dividend-paying stocks. NOBL generated total returns of -0.6% in August of 2019 2. 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