Walgreens Slashes Dividend by Nearly 50% Amid Financial Struggles

The pharmacy giant aims to retain more cash for growth and balance sheet strengthening, marking the end of a 47-year streak of dividend growth.

Boots Alliance has announced a nearly 50% cut in its dividend, ending a 47-year streak of dividend growth.
The decision to slash the dividend is aimed at retaining more cash to fund growth and strengthen the company's balance sheet.
Walgreens' financial profile has been weakening, with falling earnings and cash flow, and a deteriorating balance sheet.
The company's stock price has slumped, causing its dividend yield to rise to more than 7.5%, suggesting investors saw a high risk of a reduction.
Walgreens is contemplating an IPO of its U.K. pharmacy business, Boots, and future sales of non-core assets to reduce debt and fund strategic initiatives.