• September 24, 2022

The Remarkable Janet Yellen

The economics profession continues to struggle with gender inequality, with data showing “the gender gap in economics is the largest of any academic discipline.” So what can we learn from a …

This Is How Technology Can Be Used For Good

In which way will technology be used for good? originally appeared on Quora: the place to gain and share knowledge, empowering people to learn from others and better understand the world. …

How To Buy Corporate Bonds At 5% Discounts And 10%+ Yields

Today we’re in a situation that looks a lot like 2016. And back then, some savvy contrarians tapped it to grab quick 62%+ returns. The same setup is back again—and so …

In trading on Thursday, shares of Walgreens Boots Alliance were yielding above the 5% mark based on its quarterly dividend (annualized to $1.91), with the stock changing hands as low as $38.13 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market’s total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF (SPY) back on 12/31/1999 — you would have paid $146.88 per share. Fast forward to 12/31/2012 and each share was worth $142.41 on that date, a decrease of $4.67/share over all those years. But now consider that you collected a whopping $25.98 per share in dividends over the same period, for a positive total return of 23.36%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.6%; so by comparison collecting a yield above 5% would appear considerably attractive if that yield is sustainable. Walgreens Boots Alliance is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index.

Start slideshow: 10 Stocks Where Yields Got More Juicy »

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In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Walgreens Boots Alliance Inc, looking at the history chart for WBA below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 5% annual yield.

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WBA has been growing its dividend for more than 20 years consecutively. For more dividend growth stocks view our Dividend Aristocrats List on Dividend Channel.

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