Exploring Dividend Stocks: Avoid Walgreens Boots Alliance And Consider One Better Option

Investors often turn to dividend stocks for a reliable source of income, but it’s crucial to assess the sustainability of these dividends. Companies like Walgreens Boots Alliance may pose a higher risk due to their high payout ratios, which could mean they are paying out more in dividends than they can afford.

Here are the top 10 dividend stocks in the United States:

1. Columbia Banking System (NasdaqGS:COLB) – 7.24% dividend yield
2. Resources Connection (NasdaqGS:RGP) – 5.07% dividend yield
3. OceanFirst Financial (NasdaqGS:OCFC) – 5.03% dividend yield
4. Silvercrest Asset Management Group (NasdaqGM:SAMG) – 4.87% dividend yield
5. Regions Financial (NYSE:RF) – 4.79% dividend yield
6. Dillard’s (NYSE:DDS) – 4.77% dividend yield
7. Huntington Bancshares (NasdaqGS:HBAN) – 4.70% dividend yield
8. CompX International (NYSEAM:CIX) – 4.86% dividend yield
9. Carter’s (NYSE:CRI) – 5.16% dividend yield
10. Credicorp (NYSE:BAP) – 5.66% dividend yield

One of the top picks from our screener tool is Peoples Financial Services (NasdaqGS:PFIS) with a dividend yield of 3.6%. Although the company has a stable dividend history and a payout ratio of 49.9%, recent financial reports show a decline in net income and interest income, which could impact future sustainability.

On the other hand, Walgreens Boots Alliance (NasdaqGS:WBA) presents challenges as a dividend stock to avoid. With an unsustainable dividend yield of 8.3% and recent financial troubles including significant net losses, the company’s dividend payments have been volatile and not well-covered by earnings or cash flows.

In conclusion, it’s important for investors to carefully assess the sustainability of dividend stocks before making investment decisions. High payout ratios and financial challenges can indicate potential risks for future payouts.