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Walgreens Boots Alliance: A Dividend Aristocrat

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Jun. 30 2016, Updated 7:08 p.m. ET

A Look at Walgreens dividend payments

Walgreens Boots Alliance (WBA) has paid dividends to its shareholders for 334 straight quarters or over 83 years. In fact, the company has increased its dividends for 40 consecutive years.

Walgreens is a part of the S&P Dividend Aristocrats Index, which comprises 50 stocks that have paid dividends for more than 25 consecutive years, recessions notwithstanding.

Walgreens has grown its dividend payments at a CAGR (compound annual growth rate) of ~20% over the last ten years. However, the pace of the rise has slowed from an average of 21.5% between fiscal 2006 to fiscal 2014 to just 7.2% in fiscal 2015.

The dividend payout has improved over the last ten years from 15.7% in fiscal 2006 to 33.9% in fiscal 2015.

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Recent dividend payments

The company declared a quarterly dividend of 36 cents per share in April 2016, a 6.7% rise over its dividend from one year ago. In fiscal 2015, WBA paid $1.4 billion in dividends.

Comparing dividend yields

The one-year forward dividend yield on WBA’s current stock price stands at 1.9% as of June 28, 2016. Fellow dividend aristocrats Walmart (WMT), Target (TGT), and Cardinal Health (CAH) offer dividend yields of 2.8%, 3.3%, and 2.3%, respectively.

Investors looking for exposure to WBA through ETFs can invest in the SPDR S&P Dividend ETF (SDY). WBA makes up 0.66% of SDY. The SPDR S&P Dividend ETF tracks 50 dividend-paying companies from the S&P 1500 Composite Index that have increased their dividends for at least 20 consecutive years. The ETF also invests 1.2%, 0.87%, and 0.66% of its holdings in Walmart, Target, and Cardinal Health, respectively.

Continue reading to know how WBA is currently valued and how its valuations compare to those of its peers.

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