Walgreens Boots Alliance (WBA) is becoming a darling of value investors given that its dividend yield is 6.4% and its P/E multiple is 6.7x. Moreover, out-of-the-money puts can be shorted for extra income. On top of that enterprising investors can short out-of-the-money put options to create extra income and have a potential lower buy-in.
The fundamentals are that the dividend is $1.92 per annum but earnings are forecast to be $4.50 per share this year ending Aug. 2023 and $4.79 for next year. In other words, the dividend is only 42.7%, less than half of projected earnings.
