12 52-Week Low Dividend Stocks To Consider

5. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)

Number of Hedge Fund Holders: 35

1-Year Share Price Decline as of  September 4: 60.5%

52 Week Range: $8.56 – $27.05

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) ranks fifth on our list of the best 52-week low stocks that pay dividends. The Illinois-based retail company has struggled since the beginning of the year. It suffered a significant blow when it reduced its dividend by half, after nearly five decades of increases. Additionally, the company has faced difficulties due to competition from online retailers and pressure from pharmacy benefit managers (PBMs). The stock has declined by nearly 68% in value since the start of 2024.

Despite recent challenges, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) may still be a solid dividend investment. In fiscal Q3 2024, it generated $605 million in operating cash flow and reported $334 million in free cash flow. Over the first nine months of the year, the company paid more than $1 billion in dividends to shareholders. Additionally, its cost-saving measures provide a somewhat optimistic outlook for the company’s future. This was also highlighted by Ariel Investments in its Q2 2024 investor letter. Here is what the firm said:

“Alternatively, shares of retail drugstore operator, Walgreens Boots Alliance, Inc. (NASDAQ:WBA), underperformed following an earnings miss and significant reduction to full year guidance, largely due to continued weakness in its U.S. retail business. In response, management announced a multi-year plan for the U.S. business to reduce the retail footprint, invest in the customer experience, align the retail and healthcare businesses for enhanced go-to-market capabilities and simplify the healthcare portfolio. Meanwhile, the company continues to execute on its cost savings initiatives to optimize profitability and is using excess capital to prioritize the sustainability of its operations and balance sheet. Over the medium-term, we expect a re-rating in shares as WBA’s new CEO rebuilds the leadership team and earns credibility by executing on previously articulated strategic imperatives as well as margin.”

Walgreens Boots Alliance, Inc. (NASDAQ:WBA) offers a quarterly dividend of $0.25 per share and has a dividend yield of 11.66%, as of September 4.

Of the 912 hedge funds tracked by Insider Monkey at the end of Q2 2024, 35 funds owned stakes in Walgreens Boots Alliance, Inc. (NASDAQ:WBA), down from 41 in the previous quarter. These stakes have a consolidated value of roughly $427 million. With over 5.6 million shares, 8 Knots Management was the company’s leading stakeholder in Q2.