In today's edition of Talking Stocks I look at whether Walgreen should increase its dividend. At 3.2% it exceeds the industry average, and is quite a bit higher than its most direct competitors'. Yet, with a 29% payout ratio, it certainly has the dry powder to up the yield and reward shareholders even more. But the fallout with Express Scripts was worse than initially expected, and even though they've hugged it out, there is no guarantee customers will return in the same volume they left. This money is better spent both shoring up domestic operations to ensure that the top-line void is filled, and managing its new stake in Boots.
Walgreen stands out as a high yielder in the retail pharmacy space, but it's rare to see. If you're interested in other high-yielding dividends, The Motley Fool has compiled a special free report outlining our nine top dependabledividend-paying stocks. It's called "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your complimentary copy today at no cost! Just click here to discover the winners we've picked.
The article Should Walgreen Up Its Dividend? originally appeared on Fool.com.
Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Express Scripts. Motley Fool newsletter services recommend Express Scripts. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.