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Walgreens is reducing its dividend nearly in half as the drugstore chain aims to strengthen its balance sheet.
The healthcare giant announced that cutting its quarterly payout to shareholders to 25 cents per share will help free up capital to support the growth of its pharmacy and healthcare businesses. I Photo: Mike Mozart Flickr
The healthcare giant announced that cutting its quarterly payout to shareholders to 25 cents per share will help free up capital to support the growth of its pharmacy and healthcare businesses, Tom Murphy reported for the Associated Press (AP).
New CEO, Tim Wentworth, stated in a release that company leaders believe such growth "will ultimately improve shareholder value." The new dividend compares to a 48 cents per share payout the company announced in October.
Edward Jones analyst John Boylan mentioned that the dividend cut was a necessary move. "However, this is just another step in the financial healing process, and seeing predictable and sustained growth may take time," he said in an email.
Walgreens also announced a better-than-expected fiscal first quarter. Walgreens Boots Alliance Inc. operates a network of 13,000 drugstores globally, with most of its locations in the US, where its locations are becoming growing sources for care.
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