The company cuts its dividend and shares fall more than 10%

The pharmacy giant, Walgreens Boots Alliance, shocked investors by sharply cutting its quarterly dividend. How will this decision affect the company's future, and what does new CEO Tim Wentworth plan to do to restore growth?

Walgreens Boots Alliance $WBA, a key player in the pharmacy and medical services world, saw a dramatic drop in the market after announcing a significant cut of more than 10% in its quarterly dividend. This decision, which comes after 91 years of stable dividends, triggered a 10% loss in the stock.

Walgreens'adjusted earnings for the first quarter of the fiscal year came in at 66 cents per share, beating analysts' expectations. However, along with that, a dividend cut was announced from 48 cents to 25 cents per share, a marked drop from previous quarters. This news came in the context of a longstanding practice of stable dividends, which Walgreens has maintained for an incredible 91 years.

Walgreens CEO, Tim Wentworth, emphasized that the dividend cut reflects the…