It's getting harder and harder to find a great dividend stock that has both great fundamentals and technically a great price. The markets have just moved too high too fast. But if you look close enough and long enough, you can always find that special case that's both fundamentally sound and somewhat technically inexpensive. Today I came across one of those companies -- Walgreens Boots Alliance.
A quick look at the chart and you'll wish you bought the stock two weeks ago when the price was closer to $81 rather than the current price of nearly $86. But look at the estimates below and it's obvious that there's still more to be gained over the next year. That's not necessarily true for many of the other great dividend stocks. Below you'll find the fundamentals and links to the shares technical charts.
A quick look at the chart and you'll wish you bought the stock two weeks ago when the price was closer to $81 rather than the current price of nearly $86. But look at the estimates below and it's obvious that there's still more to be gained over the next year. That's not necessarily true for many of the other great dividend stocks. Below you'll find the fundamentals and links to the shares technical charts.
Walgreens Boots Alliance, Inc. operates as a pharmacy-led health and wellbeing company. It operates through three segments: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale. The Retail Pharmacy USA segment sells prescription drugs and an assortment of general merchandise, including non-prescription drugs, beauty products, photo finishing, seasonal merchandise, greeting cards, and convenience foods through its retail drugstores and convenient care clinics. It also provides specialty pharmacy services; and manages in-store clinics. As of August 31, 2016, this segment operated 8,175 retail stores under the Walgreens and Duane Reade brands in the United States; and 7 specialty pharmacies, as well as approximately 400 in-store clinic locations. The Retail Pharmacy International segment sells prescription drugs; and health, beauty, toiletry, and other consumer products through its pharmacy-led health and beauty stores, as well as through boots.com. It is also involved in optical practice and related contract manufacturing operations. This segment operated 4,673 retail stores under the Boots, Benavides, and Ahumada in the United Kingdom, Thailand, Norway, the Republic of Ireland, the Netherlands, Mexico, and Chile; and 636 optical practices. The Pharmaceutical Wholesale segment engages in the wholesale and distribution of specialty and generic pharmaceuticals, health and beauty products, and home healthcare supplies and equipment, as well as provides related services to pharmacies and other healthcare providers. This segment operates in France, the United Kingdom, Germany, Turkey, Spain, the Netherlands, Egypt, Norway, Romania, the Czech Republic, and Lithuania. Walgreens Boots Alliance, Inc. was founded in 1901 and is based in Deerfield, Illinois.
(Summary) (Company) (Chart)
(Summary) (Company) (Chart)
| 20 February 2017 Price $85.86 1yr Target $94.52 Analysts 20 Dividend $1.50 Payout Ratio 39.68% 1yr Cap Gain 10.08% Yield 1.74% 1yr Tot Return 11.82% P/E 22.70 PEG 1.80 Beta 1.25 | EPS (ttm) $3.78 EPS next yr $5.52 Forward P/E 15.55 EPS next 5yr 12.60% 1yr Price Support $69.55 Market Cap $92.45 Bil Revenues $116.82 Bil Earnings $4.12 Bil Profit Margin 3.52% Quick Ratio 0.90 Current Ratio 1.50 Debt/Equity 0.64 | 1yr RevGR 13.44% 3yr RevGR 17.37% 5yr RevGR 10.20% 1yr EarnGR -4.50% 3yr EarnGR 12.54% 5yr EarnGR 5.37% 1yr DivGR 6.04% 3yr DivGR --- 5yr DivGR --- ROA 5.90% ROE 13.80% |
The Path Going Forward
While WBA has a short dividend history, Walgreens had a long history of increasing its dividend over at least the last 25 years as it's on the list of Dividend Aristocrats. That recognition alone makes it a preferred choice for Dividend Growth Investors. For me it's a matter of finding dividend growth stocks that are currently priced relatively low enough that the total estimated annual return makes sense. That's not an easy thing to do in a market that's moved up so much recently.
I intend to add shares of WBA to my portfolio over the next few weeks as long as the stock stays at or below its current price. A price any higher and this transaction becomes harder to do. Any move lower makes any transaction a lot more desirable. In addition, this stock has a beta of 1.25 which may allow the stock to pullback just enough to make this transaction desirable and a lot more profitable.
As a Dividend Aristocrat, buying and holding shares of this company, along with dividend reinvestment, could easily make this company a significant core holding in my portfolio.
While WBA has a short dividend history, Walgreens had a long history of increasing its dividend over at least the last 25 years as it's on the list of Dividend Aristocrats. That recognition alone makes it a preferred choice for Dividend Growth Investors. For me it's a matter of finding dividend growth stocks that are currently priced relatively low enough that the total estimated annual return makes sense. That's not an easy thing to do in a market that's moved up so much recently.
I intend to add shares of WBA to my portfolio over the next few weeks as long as the stock stays at or below its current price. A price any higher and this transaction becomes harder to do. Any move lower makes any transaction a lot more desirable. In addition, this stock has a beta of 1.25 which may allow the stock to pullback just enough to make this transaction desirable and a lot more profitable.
As a Dividend Aristocrat, buying and holding shares of this company, along with dividend reinvestment, could easily make this company a significant core holding in my portfolio.
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