Walgreen Co. (WAG) operates a chain of drugstores in the United States. WAG has never been shy when it comes to increasing it dividend. It has provided double-digit increases every year since 2003. With a yield below 3%, the increases are what attracted dividend growth investors. However, after today's increase, there may be a new class of investors looking at the stock.
On June 19th the company increased is quarterly dividend 22.2% to $0.27 cents per share. The dividend is payable Sept. 12, 2012, to shareholders of record Aug. 17, 2012. The increase raises the annual dividend rate $1.10 per share. The yield based on the new payout is 3.6%.
Walgreen's President and CEO Greg Wasson was quoted in the release saying, "We are increasing our dividend in line with our commitment to return cash to shareholders and consistent with our previously stated goal of a long-term dividend payout target of 30 to 35 percent of net earnings."
The company's stock dropped 5.85% Tuesday. The positive dividend news was not enough to offset in-line quarterly results with same-store sales dropping 6.6% due to the loss of Express Scripts (ESRX) business.
Even with this dividend increase, I am still not ready to buy. At least not until I fully understand the financial implications of the loss of its pharmacy benefit management contract with Express Scripts.
Full Disclosure: No position in the aforementioned securities. See a list of all my dividend growth holdings here.
- 7 Small-Cap, High-Yield Dividend Stocks
- 10 High-Energy, High-Yield Dividend Stocks
- 12 Dividend Stocks For A Powerful Income Stream
- 7 Dividend Stocks Sporting A Five-Star Rating
- 10 Dividend Stocks Ignoring The 4% Rule
Popular Posts - Last 7 days
The difference between an income investor and a dividend growth investor is time and the understanding of how compound growth works. If you...
Linked here is a detailed quantitative analysis of Wells Fargo & Company (WFC). Below are some highlights from the above linked analysi...
Each Sunday I highlight any notable articles that I came across over the past week. Though I may not always agree with each of the articles ...
Most casual income investors focus on current yield, which is important. However, if your objective as an income investor is to build a port...
Linked here is a detailed quantitative analysis of McDonald's Corporation (MCD). Below are some highlights from the above linked analys...
Presented below are my dividend stock and ETF/CEF holdings. This is not a recommendation to buy these securities. I have classified some of...
Monday, October 31, 2011 will mark my fourth full year of writing as Dividends4Life . It is hard to believe another year has passed. Like th...
Like many that came before me, I am on a journey to construct a portfolio that will provide me... Dividends 4 Life
How much money will you need for retirement ? This a very difficult question to answer. There are many factors and assumptions that go into ...
Linked here is a detailed quantitative analysis of Kimberly-Clark Co. (KMB). Below are some highlights from the above linked analysis: Co...