shares Walgreens Boots Alliance (NASDAQ: WBA) The company's shares fell sharply last year after a series of dismal earnings reports amid falling vaccine demand, headwinds from consumer discretionary spending and misleading acquisitions.

As a result, Walgreens was forced to cut its dividend, take billions of dollars in impairment charges, and lose its position in the industry. Dow Jones Industrial Average (DJINDICES: ^DJI). The stock fell 64% in 2024, according to data from S&P Global Market Intelligence. As you can see from the chart, the stock has declined steadily for much of the year as its outlook continued to decline.

Walgreens' stock has fallen steadily through the first three quarters of the year as the company missed expectations and cut guidance and Wall Street's view of the stock soured. By the fourth quarter, the stock appeared to have stabilized but has yet to show signs of recovery.

Walgreens' slump started early, as it said it would cut its dividend when it reported first-quarter earnings in early January. The company cut its quarterly dividend by 48% to $0.25, which it said was part of a focus on adjusting costs and increasing cash flow. The company also maintained its adjusted earnings per share guidance at that time at $3.20-$3.50.

In its second-quarter report released in late March, Walgreens dropped another bomb on investors, taking a $5.8 billion goodwill impairment on VillageMD. It acquired the primary care and urgent care businesses as a way to diversify and vertically integrate, but it's clear that it paid a vastly overpriced price for the business. Walgreens spent $5.2 billion in 2021 to increase its stake in VillageMD from 30% to 63%, although its business growth strategy has not been successful. The company also narrowed its adjusted earnings per share guidance for the quarter to $3.20-$3.35.

Walgreens' worst day of the year was June 27, when the stock fell 22% on another disappointing earnings report. This time, the company lowered its full-year earnings per share guidance to $2.80-$2.95 due to challenging pharmaceutical industry trends and a weak consumer environment.

Almost everything that could go wrong did for Walgreens last year, but the company showed signs of recovery in its first-quarter earnings report earlier this month. While management expects adjusted earnings per share of just $1.40 to $1.80 this year, the business appears to have stabilized and revenue is growing.

For dividend investors, Walgreens is attractive right now, with a dividend yield of 10.9%, which should be safe if the business stabilizes.

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