Tag Archives: WBA

Timber Hill LLC Sells 2,614 Shares of Walgreens Boots Alliance (WBA)

Timber Hill LLC lowered its stake in Walgreens Boots Alliance (NASDAQ:WBA) by 10.5% during the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 22,181 shares of the pharmacy operator’s stock after selling 2,614 shares during the period. Timber Hill LLC’s holdings in Walgreens Boots Alliance were worth $1,452,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors also recently bought and sold shares of the stock. Parkside Investments LLC grew its stake in shares of Walgreens Boots Alliance by 3.0% in the 4th quarter. Parkside Investments LLC now owns 24,806 shares of the pharmacy operator’s stock worth $1,801,000 after buying an additional 715 shares during the last quarter. BTIM Corp. boosted its stake in Walgreens Boots Alliance by 3.5% during the 4th quarter. BTIM Corp. now owns 21,457 shares of the pharmacy operator’s stock valued at $1,558,000 after purchasing an additional 725 shares during the last quarter. Eads & Heald Investment Counsel boosted its stake in Walgreens Boots Alliance by 3.6% during the 4th quarter. Eads & Heald Investment Counsel now owns 21,249 shares of the pharmacy operator’s stock valued at $1,543,000 after purchasing an additional 748 shares during the last quarter. 440 Investment Group LLC boosted its stake in Walgreens Boots Alliance by 1.6% during the 4th quarter. 440 Investment Group LLC now owns 49,341 shares of the pharmacy operator’s stock valued at $3,583,000 after purchasing an additional 780 shares during the last quarter. Finally, Carnegie Capital Asset Management LLC boosted its stake in Walgreens Boots Alliance by 3.3% during the 4th quarter. Carnegie Capital Asset Management LLC now owns 24,680 shares of the pharmacy operator’s stock valued at $1,783,000 after purchasing an additional 790 shares during the last quarter. Institutional investors own 61.52% of the company’s stock.

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In related news, Director William C. Foote sold 2,736 shares of the firm’s stock in a transaction on Wednesday, May 2nd. The stock was sold at an average price of $65.56, for a total value of $179,372.16. Following the transaction, the director now directly owns 13,679 shares of the company’s stock, valued at approximately $896,795.24. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. 14.80% of the stock is currently owned by company insiders.

WBA has been the topic of several recent analyst reports. Zacks Investment Research upgraded Walgreens Boots Alliance from a “hold” rating to a “buy” rating and set a $71.00 target price on the stock in a research note on Saturday, April 7th. Royal Bank of Canada set a $94.00 target price on Walgreens Boots Alliance and gave the company a “buy” rating in a research note on Friday, February 16th. Pivotal Research cut their target price on Walgreens Boots Alliance from $73.00 to $69.00 and set a “hold” rating on the stock in a research note on Friday, March 23rd. ValuEngine downgraded Walgreens Boots Alliance from a “buy” rating to a “hold” rating in a research note on Friday, February 2nd. Finally, BidaskClub downgraded Walgreens Boots Alliance from a “sell” rating to a “strong sell” rating in a research note on Thursday, March 22nd. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating, thirteen have given a buy rating and one has assigned a strong buy rating to the company’s stock. Walgreens Boots Alliance currently has a consensus rating of “Buy” and a consensus price target of $83.20.

NASDAQ WBA opened at $65.74 on Thursday. The firm has a market cap of $64.07 billion, a PE ratio of 11.44, a PEG ratio of 1.05 and a beta of 1.15. The company has a current ratio of 0.90, a quick ratio of 0.45 and a debt-to-equity ratio of 0.44. Walgreens Boots Alliance has a 1-year low of $64.88 and a 1-year high of $65.72.

Walgreens Boots Alliance (NASDAQ:WBA) last released its quarterly earnings results on Wednesday, March 28th. The pharmacy operator reported $1.73 earnings per share for the quarter, beating the consensus estimate of $1.55 by $0.18. Walgreens Boots Alliance had a return on equity of 20.38% and a net margin of 3.33%. The firm had revenue of $33.02 billion for the quarter, compared to analysts’ expectations of $32.20 billion. During the same period in the prior year, the firm earned $1.36 EPS. The company’s revenue was up 12.1% compared to the same quarter last year. analysts forecast that Walgreens Boots Alliance will post 5.92 EPS for the current fiscal year.

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 12th. Investors of record on Friday, May 18th will be issued a $0.40 dividend. The ex-dividend date of this dividend is Thursday, May 17th. This represents a $1.60 dividend on an annualized basis and a yield of 2.43%. Walgreens Boots Alliance’s dividend payout ratio is currently 31.37%.

Walgreens Boots Alliance Company Profile

Walgreens Boots Alliance, Inc operates as a pharmacy-led health and wellbeing company. It operates through three segments: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale. The Retail Pharmacy USA segment sells prescription drugs and an assortment of general merchandise, including non-prescription drugs, beauty products, photo finishing, seasonal merchandise, greeting cards, and convenience foods through its retail drugstores and convenient care clinics.

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Institutional Ownership by Quarter for Walgreens Boots Alliance (NASDAQ:WBA)

10 Dividend Stocks to Buy in May

For the past few years, it has been slim pickings for dividend investors. High yields have been hard to find, and what opportunities did appear to exist, such as in the energy sector, often led to sizable losses that more than erased the seemingly attractive dividend yields.

However, the main problem for yield investors — low interest rates — is starting to resolve itself. The 10-year treasury yield has now doubled since its low. The Donald Trump presidency is bringing hopes of faster economic growth and higher inflation, thus powering up interest rates. New Federal Reserve chief Jerome Powell seems committed to a gradual but firm path toward higher rates going forward.

This has caused big declines for REITs (real estate investment trusts) and defensive stocks that yield-focused investors tend to gravitate toward. This dynamic has set up some outstanding bargains for dividend investors in May. The market rarely stops at fair value during a correction, some of these 10 stocks are tipping well into deep value territory. Let’s get started.

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Dividend Stocks to Buy: Exxon Mobil (XOM) Dividend Stocks to Buy: Exxon Mobil (XOM)Source: Shutterstock

Dividend Yield: 4.3%

In 2015, Exxon Mobil Corporation (NYSE:XOM) bottomed out at $72 share as the price of oil crashed. With oil reaching a nadir of $27 per barrel, investors couldn’t see a bright future for big oil companies. Fast forward, and oil is now up around $70 per barrel. Investors have rewarded XOM stock by moving it up from $72 up to $76. That’s right, with oil nearly tripling, XOM stock is up less than 10%.

Now, Exxon has some problems of its own. Ex-CEO Rex Tillerson’s controversial time over at the State Department brought unneeded publicity to his former employer. Exxon’s major development efforts are seeing mixed results. And the company’s big bet on natural gas years ago continues to underwhelm as natural gas prices stay low.

But don’t get too caught in the weeds. Exxon Mobil is the dominant American oil company. It has a storied history of dividend increases, a powerful balance sheet and unmatched scale. XOM stock has rarely yielded more than 4%, and when it has, investors have fared well buying at that level. The 16x forward price-to-earnings ratio and big pop in 2018 earnings favor buyers here as well.

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Dividend Stocks to Buy: Kraft Heinz (KHC) Dividend Stocks to Buy: Kraft Heinz (KHC)Source: Mike Mozart via Flickr

Dividend Yield: 4.5%

The party sure ended quickly for Kraft Heinz Co (NASDAQ:KHC). Just a couple years ago, 3G and Warren Buffett took control of the food giant. Those superstar investors were expected to lead Kraft Heinz to consolidate the global food industry in the same way 3G’s Anheuser Busch Inbev NV (NYSE:BUD) has reshaped the beer industry. But it hasn’t happened. Kraft Heinz has failed to make another big merger. More importantly, its organic sales growth has dried up.

Investors have punished the company. Its superstar investors and management aside, KHC stock has gone moldy; the stock is down from over $90 to $55 over the past two years. And it’s understandable why investors are irritated.

At the end of the day though, one of the world’s leading food companies is now selling at 6x trailing and 14x forward earnings with a 4.5% dividend yield. Just two years ago, investors were scrambling to buy these sorts of giant food companies at more than 20x earnings and less than a 3% dividend.

Now, at far better prices, people are selling as fast as they can. Take advantage of the herd and load the pantry with this 4.5% dividend payer.

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Dividend Stocks to Buy: Hershey (HSY) Dividend Stocks to Buy: Hershey (HSY)Source: mhiguera via Flickr

Dividend Yield: 2.9%

Kraft Heinz is far from the only food company that should be on dividend investors’ radars now. The sector is deeply out of favor, leading to numerous opportunities. Next up is Hershey Co (NYSE:HSY).

For a summary, this storied brand is by far the leading chocolate seller in the United States and one of only two with meaningful market share. This has practically given the company a license to print money with fat profit margins and stable sales volume over the years.

HSY stock is down as of late due to higher cocoa prices and the broader sector sell-off. This stuff doesn’t matter in the long-term though. And speaking of the long-term, The Hershey Foundation safeguards investors’ interests here, keeping management focused on building a long-term global chocolate and snacks empire rather than playing short-term EPS games. The current nearly 3% dividend yield is the second highest over the past 30 years of Hershey’s history; it only paid more during the financial crisis. As such, don’t expect HSY stock to stay this cheap for long.

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Dividend Stocks to Buy: Hormel Foods (HRL) Dividend Stocks to Buy: Hormel Foods (HRL)Source: Mike Mozart via Flickr (Modified)

Dividend Yield: 2.1%

Unlike the previous two food companies, Hormel Foods Corp (NYSE:HRL) has comparatively been on a roll. Its stock has avoided the broader foods sell-off. It is flat for 2018 and up 20% from last fall’s low. That said, HRL stock is still deeply undervalued here at $35.

The company, known for its iconic SPAM brand, has quietly repositioned itself as a millennial powerhouse. The company caught onto the low-carb movement early, stocking up on products targeting protein and healthier eating. Recent acquisitions include a major guacamole brand, organic nut butters, natural/hormone free deli meats and protein drinks. The company also has a partnership with Mexico’s Herdez to distribute that country’s most popular salsa to the fast-growing Mexican-American community.

In recent years, Dividend Kings such as Hormel (50 or more years of consecutive dividend hikes) traded at a huge premium. HRL stock hit as high as 30x earnings in 2016, and has had a median P/E ratio over 20 in recent years. It’s down to 18x forward earnings now, representing a much more attractive entry point.

Skeptics will claim the 2.1% dividend yield is too low. But management has averaged 18% dividend hikes over the past five years — that yield compounds fast. And with EPS up 26 out of the past 30 years, you could hardly find a more consistent growth and income stock.

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Dividend Stocks to Buy: Altria Group (MO) Dividend Stocks to Buy: Altria Group (MO)Source: Peyri Herrera via Flickr (Modified)

Dividend Yield: 5%

Let’s head to the checkout aisle of the grocery store now. It’s time for cigarettes and beer. Altria Group (NYSE:MO) stock has gotten punished lately following threats of more FDA regulation along with a big earnings miss at Philip Morris International Inc. (NYSE:PM).

These issues have put MO stock well into value territory. It’s down 21% so far year-to-date. The forward P/E ratio has dipped down to 12x. Analysts see earnings compounding at 10% per year over the next five years. That seems optimistic given its industry and the current regulatory environment. But when you start at that level of earnings and a 5% dividend yield, it’s not hard to get good overall returns on a stock regardless of how fast it grows.

Altria also owns a 10% stake in the world’s largest brewer, Anheuser Busch. That amounts to a $15 billion position, which throws off plenty of cash for Altria, thanks to Anheuser Busch’s own sporty 4.6% dividend yield.

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Dividend Stocks to Buy: Texas Instruments (TXN) Dividend Stocks to Buy: Texas Instruments (TXN)Source: VEX Robotics via Flickr

Dividend Yield: 2.4%

Income investors often overlook tech stocks. That’s a mistake. With the rapid speed with which the economy is modernizing, even yield-seekers should own a few technology plays. Texas Instruments Incorporated (NASDAQ:TXN) is the perfect sort of hybrid stock for more conservative investors.

TXN stock yields 2.4%, versus the S&P 500 at 1.9%. Along with the higher yield, you also get faster growth. Texas Instruments has specialized in niche analog semiconductor chips needed for thousands of specific applications. Its patent library is huge, and unlike more commodity semiconductor companies, Texas Instruments has a more durable set of product lines. In other words, it doesn’t live or die based on the latest iPhone model.

Back to the yield angle, Texas Instruments has raised its dividend every year dating back to 2003. It has managed an impressive 21% compounded dividend growth rate over the past five years. That starting 2.4% dividend yield compounds at a blistering speed.

And while TXN stock isn’t precisely cheap at 29x trailing and 18x forward earnings, you could pay far more for other tech companies with less exciting growth prospects. Analysts see earnings growing 13% per year through 2023.

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Dividend Stocks to Buy: EPR Properties (EPR) Dividend Stocks to Buy: EPR Properties (EPR)Source: Shutterstock

Dividend Yield: 7.8%

Along with consumer staples, investors have also been dumping their REITs. The general reason is the same: interest rates are going up, so high yield stocks lose their appeal in comparison to bonds. The selling has been indiscriminate, with little attention paid to what in particular is being dumped. While many REITs were overvalued in previous years and deserve their recent haircuts, here are two that should stand apart from their sector.

EPR Properties (NYSE:EPR) is an interesting, diversified REIT. It has acquired a bunch of non-traditional rental assets in fields as varied as educational facilities, movie theaters, water parks, and Peak Resorts Inc (NASDAQ:SKIS) ski resort facilities. A bunch of generic offices or shopping centers, this is not.

There are a couple of things that make EPR exciting for a yield investor. First, it is continuing to grow its cash flow — something that many REITs are no longer able to do given rising interest rates and weakness in many of the shopping and office based REITs. On top of that, EPR’s dividend is up to 7.8%. And, EPR pays it out monthly, leading to a dependable frequent-paying high-yielder with a varied mix of properties.

The stock is on sale; it’s down 24% over the past year.

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Dividend Stocks to Buy: Public Storage (PSA) Dividend Stocks to Buy: Public Storage (PSA)Source: Mike Mozart Via Flickr

Dividend Yield: 3.9%

Our other REIT for May is Public Storage (NYSE:PSA). The company is famous for its bright orange-painted self storage units across North America. Its top-tier management team has built Public Storage into the nation’s leader in the space and one of the most successful publicly-traded REITs in the U.S. over the past 25 years.

Importantly, given the changing interest rate environment, Public Storage has a compelling tactical advantage. It has relatively little debt. It has an “A” credit rating, making it one of just a handful of REITs rated that highly. Additionally, it is primarily funded by preferred stock at interest rates in the 5% range that never mature. This means that regardless of how high interest rates may go, Public Storage can keep paying 5% for its capital and never be subject to refinancing it at a higher cost. This is potentially a huge advantage depending on how far this cycle goes.

On top of that, Public Storage is unusually efficient for compounding among REITs. Management prioritizes growth over the dividend. The stock yields just 4% – and historically has often only been in the 3s. However, in addition to large dividend hikes, management also does plenty for the share price. PSA stock is a quadruple since the 2009 lows, far outpacing most other blue chip REITs. For growth and income investors, PSA stock is a perfect blend of the two forces.

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Dividend Stocks to Buy: Walgreens Boots Alliance PBM Stocks Have Much to Fear from Buffett, JPMorgan, Amazon VentureSource: Shutterstock

Dividend Yield: 2.6%

Walgreens Boots Alliance (NYSE:WBA) is another Dividend Aristocrat that has been thrown to the curb. The potential overhaul of the health care system, threats from Amazon.com, Inc (NASDAQ:AMZN), and a bunch of game-changing health care industry mergers have investors worried. That’s their loss though.

WBA stock has now increased its dividend 42 years in a row. The starting yield, at 2.6%, isn’t a game-changer. But the consistent hikes make it a solid long-term performer. Investors are preoccupied with potential near-term problems, but earnings are continuing to grow; WBA stock is now trading at just 9.9x forward earnings. At some point, the price is simply too low. WBA stock goes higher in coming quarters, and you get a respectable dividend as well.

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Dividend Stocks to Buy: Johnson & Johnson (JNJ) Dividend Stocks to Buy: Johnson & Johnson (JNJ)Source: Shutterstock

Dividend Yield: 2.9%

Finally, it’s hard to discuss healthcare dividends without mentioning Johnson & Johnson (NYSE:JNJ). This isn’t the cheapest company on this list, but given its unmatchable range of products and powerhouse brands, JNJ is the ultimate sleep-well-at-night stock.

At 23x trailing earnings and 15x forward, JNJ stock is getting back to the range where it’s starting to look like a good value. The stock reached $147 in January but is down to $124 now, and sits just a few bucks above its 52-week low. Some concerns are due to its drug development division; biotech has been having a choppy 2018.

Overall though, Johnson & Johnson has been good for 55 consecutive annual dividend increases, and at a 2.9% starting yield, the payout is high enough to make this blue chip worth picking up in May.

At the time of writing, the author owned XOM, KHC, HSY, HRL, EPR, TXN, WBA, and JNJ stock. You can reach him on Tw