Walgreens Suspends 92-Year Dividend Amid Financial Struggles

Walgreens Boots Alliance has announced the suspension of its quarterly dividend, a payout it has maintained for over 90 years, citing the need to strengthen its balance sheet as a primary reason. This decision comes as the company grapples with significant challenges, including a lawsuit from the DOJ alleging its role in the opioid crisis, high debt levels, and declining pharmacy reimbursements. Shares dropped nearly 10% following the announcement, reflecting investor concerns about the company's financial health. The management emphasized that retaining cash is vital for addressing litigation costs and refinancing debts, as well as for its ongoing turnaround strategy, which includes closing 1,200 locations. Analysts have described the suspension as a necessary step, suggesting it could be seen as a proactive measure to stabilize the business. Walgreens has also been in discussions with private equity firms about a potential sale as it navigates these turbulent financial waters.