How To Earn $500 A Month From Walgreens Boots Alliance Stock After Weak Earnings

Walgreens Boots Alliance Inc WBA on Thursday reported weaker-than-expected earnings for its fourth quarter.

The Deerfield, Illinois-based company’s quarterly sales increased 9.2% year-over-year to $35.4 billion, up 8.3% on a constant currency basis, beating the consensus of $34.82 billion.

Adjusted EPS decreased 18% to $0.67, reflecting a 23.5% headwind from significantly lower COVID-19 vaccine and testing volumes, missing the consensus of $0.69.

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Walgreens Boots Alliance said it sees fiscal year 2024 adjusted EPS of $3.20-$3.50 compared to the consensus of $3.73, and down from $3.98 in fiscal year 2023. It expects fiscal year 2024 sales of $141 billion-$145 billion, versus the consensus of $144.36 billion.

With Walgreens reporting downbeat quarterly earnings, some investors may be eyeing potential gains from the company’s dividends. As of now, Walgreens has a dividend yield of 7.94%, which is a quarterly dividend amount of 48 cents a share ($1.92 a year).

To figure out how to earn $500 monthly from Walgreens dividends, we start with the yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by Walgreens $1.92 dividend: $6,000 / $1.92 = 3,125 shares

What You Need: An investor would need to own approximately $75,594 worth of Walgreens, or 3,125 shares, to generate a monthly dividend income of $500.

Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / 1.92 = 625 shares, or $15,118 to generate a monthly dividend income of $100.

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.

For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).

Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).

Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.

WBA Price Action: Shares of Walgreens gained 7% to close at $24.19 on Thursday.

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