Walgreens undergoing changes with new CEO and dividend cut

Walgreens, also known as Walgreens Boots Alliance, has experienced a leadership change with the appointment of a new CEO, Tim Wentworth, who replaced Ros Brewer, the former CEO. Wentworth has introduced a plan to address the company's challenges, leading investors to have cautious optimism. However, as part of the company's efforts to improve its financial position, it announced a significant reduction of 48% in its dividend payout, which has left some shareholders and larger institutions unhappy. The market had already anticipated a dividend cut, given the company's financial standing. While a dividend reduction can be seen as a sign of trouble, it is also viewed as a prudent action to address the company's capital allocation choices and prioritize fixing the balance sheet.