Current Report: Walgreens Boots Alliance

Walgreens Boots Alliance Inc, known by the ticker symbol (WBA) is a large-cap pharmaceutical and general retailer, operating in the consumer defensive business sector. This is my first report on WBA for this Viital portfolio it has not ever been selected for any of my portfolios.

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Walgreens Boots Alliance is a leading retail pharmacy chain, with over 13,000 stores in 50 states and 9 countries. Walgreens’ core strategy involves brick-and-mortar retail pharmacy locations in high-traffic areas, with nearly 80% of the U.S. population living within 5 miles of a store.

Currently, the company has a leading market share of the domestic prescription drug market at about 20%. In 2021, the company sold off a majority of its Alliance Healthcare wholesale business to AmerisourceBergen for $6.5 billion, doubling down on its core pharmacy efforts and ventures in strategic growth areas in primary care (VillageMD) and digital offerings.

The company also has equity stakes in AmerisourceBergen (29%) and Sinopharm Holding Guoda Drugstores (40%).

Walgreens Boots Alliance, Inc. was founded in 1901 and is based in Deerfield, Illinois.

Three key data points gauge any dividend equity or fund such as Walgreens Boots Alliance Inc.

ABA Returns

Adding the $1.91 WBA annual dividend to the estimated one-year price upside of $6.85 shows a $8.76 potential gross gain, per share, to be reduced by any costs to trade WBA shares.

At yesterday's $42.15 closing price per share, a little over $1000 would buy 24 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.42 per share.

Subtract that maybe $0.42 brokerage cost from my estimated $8.76 gross gain estimate per share results in a net gain of $8.34 X 24 shares = $200.16 for a 20% net gain on a $1,011.60 investment.

So it is that Walgreens Boots Alliance Inc shows a possible 20% net gain including a 4.53% forward looking dividend yield.

Over the next year at this time our $1000 investment in Walgreens Boots Alliance Inc shares might generate $45.30 in cash dividends. Of course a single share of WBA stock bought at yesterday's $42.15 price is about $3.15 times less than the dividend income from our $1000.00 invested.

So, by my dogcatcher ideal, this a good time to pick up Walgreens Boots Alliance Inc shares based on their forward looking dividends for the year 2022. A forthcoming annual dividend from $1K invested is estimated to be $3.15 greater than yesterday's single share price. Consider yourself alerted. It's a sign.

All of the estimates above are speculation based on the past history of Walgreens Boots Alliance Inc. Only time and money invested in this stock will determine its market value.