Walgreens' Unsustainable Dividend and Competitive Struggles

about 1 month ago

Dan Lefkowitz

""Walgreens is a business that has faced a lot of pressures and challenges for a number of years. A lot of us are customers of Walgreens. We know that retail is a really competitive cutthroat business... Its yield rose. And it ended up having to cut its dividend. And earlier this year, it was taken out by private equity.""

The discussion on Walgreens points to the unsustainable nature of its dividend payout, evidenced by an excessively high payout ratio and market pressures from intense competition and private equity involvement. This insight cautions income-focused investors regarding the potential risks in relying solely on high-yield dividend stocks.

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