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Walgreen Co. (WAG) released excellent results and reported cash positions had tripled. They had an excellent flu season which brought in many new customers. The market cap is approximately $36 billion, give or take a few tens of millions. The yield is a paltry 1.5%. While dividends sometimes signal earnings, in this case the earnings are not sending a dividend signal. Wondering if there is a loose connection? Perhaps in the executive suite?

They spent approximately the same amount buying back their stock as they did on dividends. So what is the management strategy? A higher dividend creates a more loyal buy and hold investor. Stock buy-backs juice up prices, engineer EPS and reward stock options.

Source: Why Aren't Walgreen Earnings Sending a Dividend Signal?

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