BUZZ-Walgreens falls after suspending near century-long dividend

Updates

Shares of pharmacy chain operator Walgreens Boots Alliance WBA.O fall 11.91% to $10.10 premarket

Co said on Thursday its board of directors is suspending cash dividend historically paid to stockholders on quarterly basis, as management continues to evaluate and refine its capital allocation policy consistent with its turnaround efforts

This change in capital allocation is aimed at strengthening WBA's balance sheet by reducing debt over time and improving free cash flow, co said

Company has paid a dividend for nearly 370 straight quarters

Brokerage Leerink Partners sees it as right move for WBA's ability to reboot business

Evercore ISI says cash can go towards store closure costs, debt repayment and/or other strategic initiatives

Stock fell ~64% in 2024