My Snapshot of the Week gives you a short summary of a stock that currently looks particularly interesting to me.
This week’s focus: US pharmacy and drugstore chain Walgreens Boots Alliance.
My Stock Screener
I use my own stock screener to identify companies that perfectly fit my investment strategy. It determines the attractiveness of a stock based on 4 assessment criteria and finally leads to my personal screening result, which I call Dividend Diary Score.
More information about my stock screening process can be found here:
Companies with a Dividend Diary Score of
- less than -10 rarely make it on my watchlist
- between -10 and +10 qualify itself for my stock screener
- higher than +10 probably end up in my portfolio.
Walgreens Boots Alliance in my Stock Screener
Walgreens Boots Alliance currently scores a positive Dividend Diary Score of +11.6 points.
This very high Dividend Diary Score is the result of a particularly low stock price.
However, Walgreens Boots Alliance also scores well because of its strong earnings growth and its extremely robust earnings trend.
In addition, the US pharmacy and drugstore chain steadily increased its dividend. Meanwhile, its stock yields 2.6% and the payout ratio remains only slightly above 30%.
Conclusion: Walgreens Boots Alliance is a Buy Candidate
With a positive Dividend Diary Score of +11.6 points, Walgreens Boots Alliance is a buy candidate.
If I had no investment in its direct competitor CVS Health, I would already have initiated a small position ($1,250) in WBA. Instead, I’m going to wait a little longer.
However, to avoid being empty-handed in the end, I consider selling a put option with a strike price close to my current price target of $50.
If you liked this week’s snapshot, you’re welcome to check out my stock series. Here you can find all companies that already went through my stock screener.