02 Apr 2019 20:28
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Walgreens Boots Alliance (WBA) earning release missed expectation and decreased their earnings outlook for the year which sent the stock tumbling down 12.81% to close at $55.36/share which in turn lowered its P/E down to 10.81.
WBA is a dividend growth and inflation beating champion and I saw this as an opportunity to buy another installment at $55.10/per share and a dividend yield of 3.19%. I now have a two thirds position and if the price drops to $50 I'll make my last buy to create a full position.
It has been rare over the last year to see a dividend champion yielding more than 3% and luckily I am in a position to capitalize.
Brokerage Buy: Walgreens Boots Alliance (WBA)
Purchase Price: $55.10/share
Increase in Forward Annual Div: $32
Inflation Beating Streak: 33 Years
Div Growth Streak: 43 Years
Yield: 3.19%
Payout Ratio: 36%
Most Recent Dividend Increase: 10% / June 2018
Post preview:
Close previewGuess we both picked this one up in April. Did you complete your full purchase? Or still waiting for a sub 50 dip?
I haven't bought more yet but when it slipped into the $52 range it became pretty tempting to cancel the limit order and just buy.
When I look at it from a share perspective it is a difference of buying 20 vs 19 shares. Seeing it from this perspective it's pretty silly to let 1 share stop me from being fully invested. You helped make up my mind to replace my limit order with a buy price of 52.63. Thanks for the assist!
Looks like a good pickup and might remain flat for awhile which is good for Rhodes that want to add. I wasn’t planning on making a buy but did. It a small amount this morning. Hopefully I get to pick up more.
They are struggling with margins so there is some risk but with a 36% payout ratio there is also some cushion. I agree it may trade sideways for a bit so it'll be a good opportunity to DRIP shares.