"Walgreens Slashes Dividend Despite Profit Surge, Shocks Investors"
Walgreens has reduced its quarterly dividend from 48 cents to 25 cents per share to free up capital for expanding its pharmacy and health care businesses. The decision comes under the new CEO Tim Wentworth's strategy to improve shareholder value through growth. Despite a better-than-expected fiscal first quarter, the company faces challenges such as a decline in COVID-19 related sales and pharmacy staffing shortages. Walgreens maintains its full-year earnings guidance but anticipates a drop from the previous fiscal year's earnings. The company's shares fell 7.2% following the announcement.