+ Watch WAG
on My Watchlist
Walgreen is your corner drugstore, selling prescription and OTC drugs and an array of other merchandise.
Another type of special situation: tax inversionDrugstores already have strong demographic and legislative tailwinds aiding their performance. Walgreen might get yet another catalyst to help it's stock going forward. This one has to do with taxes.Given how close we are to April 15th, the subject of taxes and tax rates certainly is an appropriate one. Tax inversion is yet another, less talked about type of special situation. The term essentially means a company is moving its corporate headquarters from a country that has a high tax rate to a country that has a lower one. We see this sort of move from time to time and all things being equal lower tax rates are good for companies and aid their stocks' performance.A group of investors, including two activists that I personally keep a close eye on...Jana Partners and Corvex, are pressuring Walgreens (WAG) to legally move its corporate HQ to Europe after it completes its acquisition of the continent's largest drugstore chain Alliance Boots GmbH.Doing so would definitely lower WAG's taxes. The question is would there be a backlash from consumers if the company received negative publicity for evading U.S. corporate taxes? So far it sounds as though WAG is resisting the investors' efforts to get it to make the move, but this is definitely something to keep an eye on.Jason
Dividends500 tracks the 200 strongest dividends in the S&P 500. To qualify as a strong dividend, the company must meet two simple requirements:- A payout ratio below 50%- An increasing dividend from the prior yearBecause there are more than 200 dividend paying companies in the S&P 500 that meet these requirements, the qualifying companies with the largest dividend yields were chosen. Dividends500 intends to test this FactSet article, which highlights these strong dividend paying companies and their outperformance versus the S&P 500 as a whole (Page 12).http://www.factset.com/websitefiles/PDFs/dividend/dividend_12.16.13If you have questions or see something you think is inaccurate feel free to let me know.
Amerisourse Bergen signed multi year agreement worth $400 B with Walgreens Offical distrubitors begining Sept 1 2013 10 yr the deal ended relationship with Cardinal Health Alliance Boots got 7% stake in Amerisourse Bergen Co. will see its sales grow by $ 25 B repersenting 30% of its revenue
These early picks show the value of holding.Div. (Yield) $1.26 (2.1%)Current Yield 3.73%
Changing My Caps to Reflect my investing strategy. I start with a simple screener trying to find undervalued dividend paying stocks. Then because I want to invest in things I understand I eliminate any businesses I have not heard of or in areas I lack knowledge ( Financials, Precious Metals). After that I check the Caps Rating and it gets a thumbs up if it is rated 4 stars or higher. Very few 3 star companies will get a thumbs up but occasionally i will go out on a limb with one.
after reading this article i am concerned about the profit margins on dispensing products at retail as opposed to in specialty pharmacies. CVS is much better positioned in SP than walgreens so i green thumb CVS down thumb WAG http://www.drugchannels.net/2013/03/what-free-generic-lipitor-says-about.html
RX company for Obamacare in 2014
I have watched Walgreen for several years, and often feel that it does serve the needs of the seniors. For example, if I want to buy an item in smaller quantities, Walgreen may have what I need. The grocery stores seem to want me to bear the warehousing costs of most general household items.
Well managed company with a strong and increasing dividend, as well as a well funded stock buyback program. These guys are planning for the future rather then just looking forward for the next 6 months.
Jim cramer said its a good stock
Recently closed at 52 week high. Expect uneven earnings.
Love this company!
WAG is poised to continue to grow due to aging population and expansive growth in healthcare fields. This area cannot be overlooked and the huge players in the arena are the way to go. Some are bearish about the acquisition of the foreign pharmacy unit they have recently jumped into bed with, not me. International growth without having to break into the market. WAG has done a great job integrating purchases, why would this change now. The recent problems with the pharmacy benefits partner are clearing up but the improvment in this relationship has not been reflected into the price yet. Top it off with a 2.8% dividend and this one will help me grow old comfortably.
Unedited excerpt from a CAPSCall article anticipated for publication on 31-DEC-2012:The next selection for the newly launched Inflation-Protected Income Growth Portfolio is drug store titan Walgreen (NYSE: WAG). Well known for marrying convenience with service and well-staffed, knowledgeable pharmacies, Walgreen prides itself on being available where and when its customers need it.The company has paid a dividend for 80 straight years, and it has paid higher amounts each year for the past 37. That’s a commendable track record. Even better, that shareholder-friendly dividend policy predates the Bush dividend tax cuts by decades, making it unlikely that it would change just because those cuts are slated to expire. And with a respectable payout ratio of 45%, it has considerable coverage even if things do go bad.
Here's a pick where I nailed the bottom (aka luck). Walgreen is an amazing company that always increases its dividend, is still growing, and allows me to relive my childhood with Lunchables when I forget to pack a lunch. Go long, outperform, and prosper.
High earnings predictabilyt and growth persistence. strong finances, reasonable PE. Beautiful dividend. Obstinate management - this can be good or bad, depending on market reaction.
I calculated the intrinsic value to be $64.30 a share. I don't mind paying 50 cent for a dollar
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