• 
• See all for Dividend.com
• View Print Version

• Best Dividend Stocks
• High-Yield Dividend Stocks
• Ex-Dividend Calendar

• WAG 100% Rate It

Pharmacy chain operator Walgreen Company ( WAG ) on Tuesday posted in-line fiscal third quarter earnings, announced a partnership with a European pharmacy chain, and increased its quarterly dividend payout by 22%.

The Deerfield, IL-based company reported fiscal third quarter net income of $537 million, or 62 cents per share, compared with $603 million, or 65 cents per share, in the year-ago period.

Revenue fell 3% from last year to $17.75 billion.

On average, Wall Street analysts expected a matching profit of 62 cents per share, on higher revenue of $17.87 billion.

In a separate announcement, WAG said it would spend $6.7 billion in cash and stock to buy a 45% equity ownership stake in European pharmacy chain Alliance Boots. In pursuant to the deal, Walgreen retains the option to purchase the remaining 55% stake in Alliance Boots in about three years.

The company's board of directors also approved a 22% increase in its quarterly dividend payout. The new dividend of 27.5 cents per share (up from 22.5 cents) will be paid on Sept. 12 to shareholders of record as of Aug. 17. The ex-dividend date is Aug. 15.

Walgreen shares fell 66 cents, or -2.1%, in premarket trading Tuesday.

The Bottom Line
Shares of Walgreen Company ( WAG ) will now have a 3.44% dividend yield, based on the higher dividend payout and last night's closing stock price of $31.96. The stock has technical support in the $28-$30 price area. If the shares can firm up, we see overhead resistance around the $34-$36 price levels.

Walgreen Company ( WAG ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

Related Stocks Articles

• 
  Video Game Sales Plunge in April - Analyst Blog
  5/24/2013 05:26 PM
• 
  Promising Data on ONCY's Reolysin - Analyst Blog
  5/24/2013 05:26 PM
• 
  How to Beat THIS Market - Weekend Wisdom
  5/24/2013 05:26 PM