Walgreens’ stock decline and dividend cut may lead to its removal from the Dow Jones Industrial Average

  • Walgreens’ dividend cut could lead to its removal from the Dow Jones Industrial Average
  • Walgreens has the lowest share price and smallest market capitalization among Dow components
  • Possible candidates for admission to the Dow include Alphabet and Amazon
  • Other vulnerable Dow members for removal are Travelers, Verizon Communications, and Intel

The recent dividend cut at Walgreens Boots Alliance has raised concerns about the company’s future in the Dow Jones Industrial Average. With the lowest share price and smallest market capitalization among Dow components, Walgreens is considered the most vulnerable for removal from the index. Since joining the Dow Industrials in June 2018, Walgreens’ stock has declined by about 65%. The dividend cut, which was anticipated by analysts and investors, further contributed to a 6.8% drop in the stock price. Changes to the Dow Industrials could occur this year, with potential candidates for admission including Alphabet and Amazon. Other Dow members at risk of removal are Travelers, Verizon Communications, and Intel. The Dow’s structure, which weights components by stock price rather than market value, may impact the decision-making process. The last change in the Dow Industrials occurred over three years ago, and the index committee at S&P Dow Jones Indices does not comment on potential changes. Overall, Walgreens’ dividend cut has raised concerns about its future in the Dow Jones Industrial Average and has sparked discussions about potential changes to the index’s components.

Public Companies: Walgreens Boots Alliance (WBA), Google parent Alphabet (GOOGL), Amazon.com (AMZN), Berkshire Hathaway (BRK.A), Tesla (TSLA), Travelers (TRV), Verizon Communications (VZ), Intel (INTC), UnitedHealth Group (UNH), Salesforce.com (CRM), Honeywell (HON), Amgen (AMGN), Exxon Mobil (XOM), Raytheon Technologies (RTX), Pfizer (PFE), General Electric (GE), Apple (AAPL), AT&T (T), Microsoft (MSFT)
Private Companies:
Key People:

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Factuality Level: 7
Justification: The article provides information about the dividend cut at Walgreens Boots Alliance and its potential impact on the company’s position in the Dow Jones Industrial Average. It also discusses possible changes to the index and the criteria used for selecting and weighting components. The information presented is mostly factual and based on market data. However, there is some speculation about potential candidates for admission and removal from the index.

Noise Level: 3
Justification: The article provides information about the dividend cut at Walgreens Boots Alliance and its potential impact on the company’s position in the Dow Jones Industrial Average. It also discusses possible candidates for admission and removal from the index. However, the article contains some repetitive information and lacks in-depth analysis or actionable insights.

Financial Relevance: Yes
Financial Markets Impacted: The dividend cut at Walgreens Boots Alliance could impact the company’s stock price and potentially affect the Dow Jones Industrial Average.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the potential removal of Walgreens from the Dow Jones Industrial Average due to its low share price and market capitalization. This could have implications for the company’s stock price and the overall performance of the index.

Reported publicly: www.marketwatch.com