The narrative remains anticipation of a rebound in economic activity in the second half of the year due to easing of Covid-19 related restrictions, observes John Dobosz, editor of Forbes Dividend Investor — and a participating speaker at MoneyShow's Virtual Event on June 10-12.

As such, stocks continued their two-month uptrend since the S&P 500 bottomed on March 23. Small and mid-cap stocks continued to outperform the overall market, and that has bullish implications when it happens.

Deerfield, Ill.-based Walgreens Boots Alliance (WBA) is the largest retail pharmacy in the U.S. and Europe and has a presence in 25 countries.

It has 9,277 in all 50 states, and 78 percent of the U.S. population lives within five miles of a Walgreens, Duane Reade or Walgreens-owned Rite Aid store. It’s also one of the world’s largest purchasers of prescription drugs.

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Revenue for the current calendar year is expected to grow 2.2% to $140.4 billion, with earnings down 3.3% to $5.62 per share.

With free cash flow over the past 12 months of $5.62 per share, annual dividends of  $1.83 per share are comfortably covered. Dividends have grown at a 13.5% compound annual rate over the past 10 years.

Even with competition in the retail and prescription business, the stock looks cheap. Shares of WBA trade at substantial discounts to five-year average valuations, including a 57% discount to its average price-sales ratio.

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