Walgreens Announces Biggest Dividend Increase Ever

July 13, 2011   |  Written by: admin

Walgreens today announced their biggest dividend increase ever and also authorized a $2 billion stock buyback program.

Walgreens will increase their quarterly dividend by 29 percent to $.225 per share. That represents the biggest dividend increase in the company’s 110-year history. It is also the second year in a row that Walgreens has raised their dividend by at least 25 percent.

Following the dividend increase, Walgreen’s stock will offer a current yield of 2.1 percent based on yesterday’s closing price.

Walgreens is certainly no stranger to dividend increases. The dividend aristocrat has now raised their dividend for 36 consecutive years.

The company also announced a $2 billion stock repurchase program that will run through 2015. Over the past 9 months, Walgreens has repurchased $1 billion in stock. Walgreens has a current market cap of $39 billion.

Walgreens President and CEO Greg Wasson commented on the news, “This is our third share repurchase program announced since October 2009. Since then, we have completed $3 billion in share repurchases and paid $1.1 billion in dividends to shareholders. We have continued to deliver on our commitment to return cash to our shareholders consistent with our capital policy guidelines.”

Since the beginning of 2011, Walgreen’s stock price has climbed over 10 percent and it hardly seems fair to call WAG a fallen dividend aristocrat stock anymore.

The Walgreens dividend will be payable on September 12, 2011 to shareholders of record as of August 19, 2011.

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