Daily Stock Analysis: Walgreens Boots Alliance

The portfolio of stocks I started building on September 8, at a one stock per week pace for the next year, is named Vista.  I will select its nineteenth stock this weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!

Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)

Today we look at a large-cap pharmaceutical retailer named Walgreens Boots Alliance Inc. Its trading ticker symbol is WBA. This is my first report on Walgreens Boots Alliance Inc for Vista. It was also reviewed but not selected for my Volio folio No 5.

Walgreens Boots Alliance operates nearly 19,000 locations in 50 states and 25 countries. The core defensive positioning is primarily around the pharmacy that are placed in high traffic locations. 

Currently, the company has the largest retail pharmacy market share (around 20%, excluding mail) which provides significant cost advantages and scale. Annually, the company generates over $140 billion in revenue consisting of U.S. retail pharmacy (around 75%), International pharmacy (around 10%), and pharmaceutical wholesale (around 20%).

Walgreens has established strategic partnerships to offer incremental services to increase average revenue per customer and has an equity stake in AmerisourceBergen (26%) and Sinopharm Holding Guoda Drugstores (40%).

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

I use three key data points to gauge dividend equities or funds like Walgreens Boots Alliance Inc:

(1) Price

(2) Dividends

(3) Returns

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

WBA Price

Walgreens's price per share closed at $49.10 yesterday. A year ago its price was $54.62. Price dropped $5.52 or a little over 10% last year.

If Walgreens's stock trades in the range of $33 to $54 this next year, its recent $49.10 price might rise by $1.40 to reach $50.50 by January 14, 2022. 

WBA Dividends

Walgreens's most recently declared quarterly dividend was $0.4675 paid December 11th. Dividends are estimated to total $1.87 per share annually and yield 3.81% at yesterday's $49.10 closing price.

WBA Gains?

Adding the $1.87 annual Walgreens's anticipated dividend to my $1.40 optimistic price upside shows a $3.27 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little over $1,000.00 today in Walgreens Boots Alliance Inc at $49.10 per share and we'd buy 20 shares of WBA stock.

A $10 broker fee (if any) paid half at purchase and half at sale could cost us about $0.50 per share.

Subtract that maybe $0.50 brokerage cost from my estimated  $3.27 gross gain per share results in a net gain of $2.77 X 20 shares = $55.40 for a 5.5% net gain on a $982.00 investment.

Walgreens Boots Alliance Inc shows a possible 5.5% net gain including a 3.81% dividend yield. It could be more, it could be less.   

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 worth.

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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