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Walgreens Boots Alliance (WBA) is one of the largest retail pharmacy chains in the U.S., with over 8,500 locations. Nearly three-quarters of Americans live within five miles of a Walgreens location.

Roughly two-thirds of revenue is generated from prescription drug sales; Walgreens makes up 20% of total prescription revenue in the U.S. Walgreens also generates sales from retail products (general wellness consumables and its own branded merchandise), European drug wholesale, and healthcare.

With more locations incorporating additional services like Health Corner and Village Medical, Walgreens creates an omnichannel experience for patients and positions itself as a one-stop healthcare provider.

The company operates retail stores under the Boots, Benavides, and Ahumada in the United Kingdom, Thailand, Norway, the Republic of Ireland, the Netherlands, Mexico, and Chile. It also engages in pharmaceutical wholesaling and distribution business in Germany.

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

Three key data points gauge Walgreens Boots Alliance Inc or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

WBA Price

Over the past year, Walgreens share price dropped about 20.3% from $32.16 to $22.17 as of Thursday’s market close.

If WBA stock trades in the range of $15.00 to $35.00 this next year, its recent $ 22.17 share price might rise to $25.00 by next year. Of course, WBA’s price could drop about the same $2.83 estimated amount or more.

My upside estimate of $2.83, however, is about $5.85 under the median of one-year target prices estimated by 13 analysts covering WBA for brokers.

WBA Dividend

Walgreens has paid regular Quarterly dividends since September 12, 1986.  WBA’s most recent Q dividend, payable September 12th to shareholders of record August 18th, is $0.48. The resulting $1.92 annual return casts a forward yield of 8.66% per Thursday’s closing price.

WBA Returns

Add the $1.92 anticipated annual dividend to Walgreens estimated $2.83 possible price upside, reveals a $4.75 potential gross gain per share for the coming year.

At Thursday’s $22.17 closing price, a little under $1000 would buy 45 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.22 per share.

Subtracting that likely $0.22 brokerage cost from my estimated $4.75 gross gain per share makes a net gain of $4.53 X 45 shares = $203.85 or about a 20.4% net gain.

This might be about time to pounce on WBA shares. But beware, WBA is a U.S. and International Pharmaceutical Retailer paying Quarterly dividends for thirty-seven years. Furthermore, the estimated $86.60 annual dividend from $1000 invested comes in at 3.9 times greater than the recent $22.17 single share price. The question is how low can WBA share price go to maximize your annual dividend returns from a $1k investment beyond the single share price? $15 maybe?

Remember the true value of any stock is best realized through personal ownership of shares.

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