Recent Buy – Walgreens Boots Alliance Inc.

On April 11th I purchased 45 shares of Walgreens Boots Alliance Inc. (WBA) for 54,58 $ per share plus commission. The total cost of the purchase was 2 193 €.

Overview

Walgreen boots Alliance Inc. is an American holding company that owns Walgreens, Boots and numerous other pharmaceutical distribution, manufacturing and wholesale companies. They have operations in more than 25 countries and employ over 415 000 people.

Walgreens operate in three segments, which are:

  • Retail Pharmacy USA
  • Retail Pharmacy International
  • Pharmaceutical Wholesale

The company is the largest retail pharmacy, health and daily living destination across the USA and Europe. 

About The Stock

The stock has been under pressure for a while now. The latest drop happened after they missed earnings in Q1 and lowered 2019 forecast. There are also concerns how Amazon’s move into physical retail will affect the margins.

The current price is about 37 % below 52 week high. As a result stock is trading at a low valuation and has a record high dividend yield. 

Some statistics about the stock:

  • Sector: Consumer Defensive
  • EPS: 5,05 $ (2018)
  • P/E Ratio: 10,8
  • Yield: Pays a quarterly dividend of 0,44 $ per share which equals 3,22 % yield.
  • Payout ratio: Dividend payout ratio is 35 %, which leaves plenty of room for growth.
  • Dividend History: Walgreens Boots Alliance Inc. is a dividend aristocrat with 43 consecutive years of dividend growth.
  • Dividend Growth Rate: Average dividend growth rate over the last 5 years is 6,9 %.

Summary

Walgreens Boots Alliance Inc. is a new holding in my portfolio. With current yield it increases my annual passive income by 69,9. After the purchase weight of WBA is 2,9 % of my portfolio.

Have you purchased any stocks this month? What do you think about this buy? Please share your thoughts in the comment section below!

Thanks for reading.

 

16 thoughts on “Recent Buy – Walgreens Boots Alliance Inc.

  1. Div.Income Reply

    Hi,

    nice purchase. Will be also on the list for next week to buy some stocks of that company. The valuation seems to be just fair enough to add some shares :)…

    • Dividend Deluge Post authorReply

      Thanks for the comment DI! I think it’s a good time to purchase some WBA shares, because the stock price drop was too big in my opinion.

  2. Divs4Jesus Reply

    Hi DD – also picked up WBA this month. I was looking at both CVS and WBA but decided on WBA since they have not frozen their dividend. Many still pick some CVS up as well.

    • Dividend Deluge Post authorReply

      Hi D4J! I was also looking at both companies before this purchase. I still might to buy CVS later this year, because that stock is also looking undervalued even though they decided to freeze their dividend.

      Thanks for the comment!

  3. BrokeInvestor Reply

    Nice buy Deluge! It takes guts to buy company that is going down in price. I know because my most recent purchase was CVS which is also on a downward trend 🙂
    I think it will pay off for you! It’s quite hard to find undervalued companies at the moment and I think WBA is a solid choice.
    BI

    • Dividend Deluge Post authorReply

      Thanks BI! It is really hard to guess when the stock will bottom, but as Druss commented earlier it is always possible to average down later on. I think CVS is also a solid choice even though they decided to freeze their dividend.

  4. Dividend Diplomats Reply

    Buying the dip. The metrics between CVS and WBA are looking awesome right now. As long as you feel safe about the dividend, nice time to buy low. Enjoy the income and the higher yield.

    Bert

    • Dividend Deluge Post authorReply

      Thanks Bert! I feel safe about the dividend, but I don’t think it’s possible to find severely undervalued stocks without taking any risk.

  5. Druss Reply

    I bought WBA recently, so my entry prize is worse, but I will probably average down very soon.
    Good luck

  6. Doug Reply

    Nice a bought a little the day after the big drop hopefully it stays down awhile because I want to stock up for a year or so but also I’m greedy like that lol

    • Dividend Deluge Post authorReply

      Thanks Doug! I know what you mean, I was going to buy Disney shares later this month, but it rallied before I was able to complete my purchase.

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