Walgreen reports Q2’14 results

On Tuesday, Walgreen, one of my core holdings based on it’s dividend growth record, reported second quarter results with record sales, falling short of expectations by $0.01.

From their announcement,

・Company reports adjusted second quarter earnings per diluted share of 91 cents, compared with adjusted earnings per diluted share of 96 cents in year-ago quarter; GAAP earnings per diluted share of 78 cents compared with 79 cents in last year’s second quarter
・Second-quarter sales increase 5.1 percent to record $19.6 billion as total sales in comparable stores increase 4.3 percent
・Walgreens delivers second-quarter operating cash flow of $1.1 billion

TTM earnings of $2.84 represent an increase of 27%, year over year, and a trailing PE of 23x.

Dividend payout as a function of free cash flow remained stable at 34% – well below my 65% barrier – and 44% for the year.

Total return for the 5 year period came in at 26%; clearly WAG will remain in my US portfolio for the foreseeable future.

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