MOD2SLP - Walgreen also faced pressure due to prescription...

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Investors in Walgreens ( WAG ) have to be tremendously disappointed with the stock’s performance in 2010. Last year, Walgreens investors enjoyed a 49% surge in the stock price, but it’s been a very different story in 2010. WAG shares have fallen 23% this year and the stock has badly underperformed both the Walgreen Co. (WAG), together with its subsidiaries, operates a chain of drugstores in the United States. The company increased the quarterly dividend 27.3% to $0.175 per share, for the 35th consecutive year. Walgreen is a dividend aristocrat and yields 2.40%. Walgreen’s earnings were disappointing as it has been witnessing several headwinds. While same-store sales increased by a mere 0.7%, front-end same-store sales increased 0.1%. Sales were affected by a weak economy, which continued to hamper demand for discretionary goods. Moreover, lower-than-anticipated sales of flu-related products also hampered same store sales.
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Unformatted text preview: Walgreen also faced pressure due to prescription reimbursement issues and a slower rate of introduction of new generic products during the quarter. 52wk high: 40.69 52wk low: 26.26 EPS: 2.08 PE: 13.50 Dividend: 0.70 Yield: 2.50 Market Cap: 27.25 b Volume: 9.72 m 52wk high: 40.69 5 year 52wk low: 26.26 EPS: .08 PE: 13.50 Dividend: 0.70 Yield: 2.50 9.72 Walgreens is one of the few that meet the following simple criteria for a dividend growth investor, current yield of at least 2.5%, 5-year and 10-year dividend CAGR of at least 10% (rounded), and 2010 dividend increase of at least 10% (rounded). The market favors companies that generate positive Economic Margins (true measure of economic profitability) and are capable of expanding their business. I think that the futures price of 100 shares of Walgreen will be delivered to me in one year would be questionable to me right now. http://seekingalpha.com...
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MOD2SLP - Walgreen also faced pressure due to prescription...

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