In today's edition of Talking Stocks I look at whether Walgreen should increase its dividend. At 3.2% it exceeds the industry average, and is quite a bit higher than its most direct competitors'. Yet, with a 29% payout ratio, it certainly has the dry powder to up the yield and reward shareholders even more. But the fallout with Express Scripts was worse than initially expected, and even though they've hugged it out, there is no guarantee customers will return in the same volume they left. This money is better spent both shoring up domestic operations to ensure that the top-line void is filled, and managing its new stake in Boots.
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