Drugstore chain Walgreens cuts quarterly dividend to get more cash to grow its business

Walgreens is chopping its dividend nearly in half as the drugstore chain looks to strengthen its balance sheet. 

The healthcare giant said Thursday that reducing its quarterly payout to shareholders to 25 cents per share will help free up capital to spend growing its pharmacy and healthcare businesses. 

New CEO Tim Wentworth said in a statement that company leaders believe such growth “will ultimately improve shareholder value.” 

Company shares jumped in early-morning trading after Walgreens also announced a better-than-expected fiscal first quarter.