Daily Stock Analysis: Walgreens Boots Alliance - Your Neighborhood Drugstore

Walgreens Boots Alliance with the ticker (WBA) is a large-cap pharmaceutical retailer operating in the healthcare business sector. This is the first of five healthcare candidates competing for the forty-ninth slot in my Viital folio. It is my first  report on WBA for my Viital portfolio. However I did select WBA for one of my previous six portfolios.

Unsplash

Walgreens Boots Alliance is a leading retail pharmacy chain with about 13,000 stores in the U.S. and internationally.

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 share of the domestic prescription drug market at about 20%. In 2021, the company sold 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 Drugstore (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:

(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

Walgreens’ price per share was $35.27 as of yesterday’s market close.  One year ago it’s price was $51.00. So, WBA’s share price fell by $15.23 or about 31% in the past year.

If Walgreens’ stock trades in the range of $32.00 to $48.00 this next year, its recent $35.27 share price might rise by $4.73 to reach $40.00 by next year. My $4.73 upside estimate is about $2.83  under the median of 1yr Target prices estimated by 15 brokers analysts.

WBA Dividends

Walgreens’ most recently declared quarterly dividend of $0.48 is payable Friday, September 9th to shareholders on record as of August 18.

Since February 1985 WBA has paid quarterly dividends, however since June 12, 2004 the quarterly dividend has increased in annual increments from $0.04 to the current $.48 amount. The current forward looking annual dividend of $1.92 casts an annual yield 5.44% as of yesterday’s $35.27 share price.

WBA Returns

Adding the $1.92 WBA annual dividend to my estimated one-year price upside estimate of $4.73 shows a $6.65 potential gross gain, per share, to be reduced by any costs to trade WBA shares.

At yesterday's $35.27 closing price, a little over $1000 would buy 28 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.36 per share.

Subtract that maybe $0.36 brokerage cost from my estimated $6.65 gross gain estimate per share results in a net gain of $6.29 X 28 shares = $176.12 for a 17.6% net gain including a 5.44% forward looking annual dividend yield.

Over the next year our $1K investment in Walgreens Boots Alliance Inc shares could generate $54.40 in cash dividends. Of course, a single share of WBA stock bought at yesterday's $35.27 price is  $19.13 less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a positive time to acquire WBA shares based on their forward looking dividends for the year 2022. The forecast annual dividend from $1K invested is $19.13 greater than yesterday’s single share price. Consider yourself alerted. Now is the time.

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.


More By This Author:

Daily Stock Analysis: Union Bankshares
Daily Stock Analysis: Mercury General
Daily Stock Analysis: TFS Financial Corp.

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 ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Or Sign in with