Walgreens stock plunges after drugstore chain slashes quarterly dividend nearly in half

Shares of Walgreens closed 5% lower on Thursday after the company reported fiscal first-quarter adjusted earnings and revenue that topped expectations, but cut its quarterly dividend nearly in half. 

The retail pharmacy giant slashed its dividend to 25 cents per share from 48 cents per share to “strengthen [its] long-term balance sheet and cash position,” CEO Tim Wentworth, who officially took the helm during the quarter, said in a statement. 

Walgreens’ dividend yield is now 3.9%, based on Wednesday’s closing price. That’s down significantly from its prior yield of more than 7%, which made the company the highest-paying dividend stock in the Dow...