Why Walgreens' Dividend Suspension Shouldn't Come as a Surprise to Investors
Walgreens Boots Alliance (NASDAQ: WBA) faces an uncertain path ahead. Its financials haven't been strong in recent years, and its struggling pharmaceutical operations face growing competition. While it is slashing its store count, there's no surefire strategy that will turn the business around.Shares of the pharmacy retailer haven't been this low in decades. And while some investors may have been willing to just hang on to the stock amid the uncertainty and simply collect its dividend, now, even that is gone.On Jan. 30, pharmacy retailer Walgreens announced that it was suspending its quarterly dividend. The company is refining its strategy as it looks to improve its financials amid a broader turnaround effort. By freeing up cash flow, the company can improve its balance sheet and reduce its debt.Continue reading
Walgreens Boots Alliance (NASDAQ: WBA) faces an uncertain path ahead. Its financials haven't been strong in recent years, and its struggling pharmaceutical operations face growing competition. While it is slashing its store count, there's no surefire strategy that will turn the business around.
Shares of the pharmacy retailer haven't been this low in decades. And while some investors may have been willing to just hang on to the stock amid the uncertainty and simply collect its dividend, now, even that is gone.
On Jan. 30, pharmacy retailer Walgreens announced that it was suspending its quarterly dividend. The company is refining its strategy as it looks to improve its financials amid a broader turnaround effort. By freeing up cash flow, the company can improve its balance sheet and reduce its debt.
