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Motley Fool Money

Is Walgreens Your Next Healthcare Giant?

Jan 4, 2024
Walgreens's new CEO, Tim Wentworth, faces big tasks ahead. The podcast discusses the implications of Walgreens' dividend drop and the challenges it faces in the healthcare industry. It also explores the impact of price drops on Big Egg and discusses pullback stocks like Aritzia and Shopify.
33:18

Podcast summary created with Snipd AI

Quick takeaways

  • Walgreens' new CEO has introduced big plans to address the company's challenges and improve its financial position, which has sparked cautious optimism among investors.
  • As Walgreens operates in a competitive environment and faces challenges from various directions, it must navigate the pharmacy to healthcare pivot, address pharmacy benefit managers (PBMs), and find a balance between retail and healthcare aspects.

Deep dives

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.

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