Walgreens Suspends Dividend After 92 Years Amid Financial Woes
New York - Walgreens Boots Alliance Inc. announced the suspension of its quarterly dividend, a decision that marks a departure from the company's 92-year history of dividend payments.
The announcement signals the troubled pharmacy chain's efforts to bolster its financial health. Walgreens cited the need to reduce debt and enhance cash flow as key factors in the decision. Litigation expenses and debt financing requirements also influenced the move, the company said in a statement.
Following the announcement, Walgreens shares plunged by as much as 9% in extended trading. Over the past year, the stock has lost approximately half its value.
Walgreens has faced challenges due to declining reimbursements from pharmacies and heightened competition from online retailers. To mitigate these headwinds, the company has reportedly engaged in talks with Sycamore Partners, a private equity firm, regarding a potential privatization transaction.
In addition, Walgreens has implemented cost-cutting measures, including store closures and investment reviews, to improve its financial position.
Update: The article has been updated to reflect the latest developments in the situation.