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View in browser SPONSORED The Ultimate Passive Income Investment It's not a stock, bond or private company... But this little-known alternative investment could hand you BIG MONTHLY INCOME. CLICK HERE TO FIND OUT WHAT IT IS SAFETY NET Walgreens' 11% Yield Could Be a Tough Pill to Swallow John Oravec, Research Analyst, The Oxford Club When you look at Walgreens Boots Alliance's (Nasdaq: WBA) stock and see that it has a dividend yield of over 11%, you might think that it's a great investment. In fact, Walgreens has by far the largest dividend yield in the S&P 500. Even if the share price were to stay flat, you would net yourself a double-digit annual return without having to do anything. However, as is the case with many high dividend yields, this one may be too good to be true. Last year, Chief Income Strategist Marc Lichtenfeld reviewed Walgreens and gave it a "D" for dividend safety, meaning there was a high probability of a dividend cut. He cited Walgreens' drop in free cash flow in 2022 and 2023 as the main culprit. He also noted that the company's payout ratio was over 1,200%. This means that the company's total dividend payout was 12 times more than the amount of cash that it brought in. The only silver lining was that the company was expected to bounce back after a rough 2023 and grow its free cash flow in 2024. Today, since we're nearing the end of 2024, I thought it'd be a good time to see whether the company has turned things around. (Also, thank you to Wealthy Retirement reader Travis, who commented on a recent article to ask us to evaluate Walgreens' dividend. If you have a stock you'd like us to take a look at, leave a comment here.) I want to answer two questions today: Did Marc's "D" grade accurately assess Walgreens' dividend safety, and what is the risk of a cut this year? SPONSORED Whatever You Do, DON'T Invest in the Wrong AI Companies Most people make the mistake of listening to the mainstream media and investing in mega-cap companies like NVIDIA, Microsoft, or Google. But they're already huge! The real money is in the smallest companies with the biggest upside. Chief Investment Strategist, Shah Gilani, has compiled a list of the absolute best AI stocks in the market today and one is trading for around $1. He's revealing all the details on why he believes these stocks will be the biggest winners in this $26.5 trillion AI revolution. Click here to view the presentation. First things first, let's see whether Marc was right in predicting a dividend cut. When Marc wrote his article last year, Walgreens' dividend was at $0.48 a share. Lo and behold, less than three months later, the company slashed the dividend nearly in half to $0.25 a share. I call that a win for Safety Net. That reduction also bumps this year's grade down a level... but there are plenty of other factors that could make up for it, including free cash flow. Last year's free cash flow estimates showed that Walgreens had a chance to bounce back, but as we can see in the graph below, that did not happen. All I can say is "Yikes!" This year's free cash flow was a catastrophe. View larger image   For 2024, Walgreens' free cash flow was -$363 million. (Its 2024 fiscal year ended in August.) Even if the company were to right the ship in 2025, estimates for next year are still in the negative at -$32 million. With such a bleak outlook for Walgreens' cash flow, is its dividend salvageable? Or is the stock in for another troubling Safety Net grade? Click Here to Find Out! BUILD AND PROTECT YOUR WEALTH Top SIX AI Dividend Stocks Right Now Unlock Gold's Hidden Potential in 2025 Here are Three Steps You Need to Take to Protect and Grow Your Money When America Is Threatened With Mass Unemployment. Watch This Before AI Goes Supernova. Give Thanks and Help Those Who Need It MORE FROM WEALTHY RETIREMENT Supercharge Your Portfolio With Dividend Growers Ares Commercial Real Estate: Problems Lurk for this 13.7% Yielder The "Real" Cost of a Thanksgiving Meal Giving Thanks and Giving Back Facebook LinkedIn Email Share Push Alert SPONSORED Have you heard of the Flip Trade? At this moment, the $21 trillion commercial real estate market is in free fall. Most people are ducking for cover and praying their REITs and bank stocks don't get crushed. But millionaire trader Shah Gilani considers this collapse a gift from heaven. In fact, Shah has a special technique that he calls the Flip Trade... and history shows it has been able to generate huge potential gains on falling assets... gains of as much as 1,100% in 29 days. Go here now to get the full story... You are receiving this email because you subscribed to Wealthy Retirement. Wealthy Retirement is published by The Oxford Club. Questions? 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