Walgreens shares fall after quarterly dividend cut

On Thursday, shares of U.S. pharmacy chain Walgreens closed 5% lower following news that the company is cutting its quarterly dividends.

Walgreens CEO Tim Wentworth announced that its quarterly dividends would sit at 25 cents per share rather than its previous 48 cents per share as the company aims to “strengthen its long-term balance sheet and cash position.”

The move marks Walgreens’ first dividend cut in almost 50 years.

According to Wentworth, company investors “actually are excited about the fact that we’re going to have additional capital to invest in the core business in a way that stimulates growth again, because that ultimately is going to be the most shareholder-friendly thing we can do.”