Financial News

DEERFIELD, Ill. — The board of directors of Walgreens on Thursday declared a regular quarterly dividend of 27.5 cents per share, a 22.2% increase over the year ago dividend. The dividend is payable March 12, 2013, to shareholders of record Feb. 15, 2013.

Walgreens has paid a dividend in 321 straight quarters (more than 80 years) and has raised its dividend for 37 consecutive years. Over the last five years, Walgreens annual dividend rate has increased from 38 cents per share to $1.10 per share, resulting in a compound annual growth rate of nearly 24%.

NEW YORK -- Growth in the consumer products market is likely to slow down over the next five years, while pharmacy retailers will see a profit windfall due to the generic drug cycle, according to a new report.

MINNEAPOLIS — The sale of 877 stores to Cerberus Capital Management will help Supervalu re-energize its remaining three businesses, current Supervalu president and CEO Wayne Sales told analysts Thursday morning. "What this means … is the company is smaller," Sales said. "And we exit with a much smaller balance sheet to ensure liquidity going forward," he said. This sale will not be followed by any further divestitures, Sales said. "We're not shopping any other assets."

MINNEAPOLIS — In a move that will reunite all Albertsons stores under one operator, Supervalu on Thursday morning announced a definitive agreement under which it will sell 877 stores across the Albertsons, Acme, Jewel-Osco, Shaw’s and Star Market banners and related Osco and Sav-on in-store pharmacies to AB Acquisition, an affiliate of Cerberus Capital Management, in a transaction valued at $3.3 billion.

 CHICAGO — "[The year] 2012 was definitely an important year for Walgreens," Greg Wasson, Walgreens president and CEO, told shareholders here, at the Navy Pier, Wednesday afternoon, at the chain's annual shareholder meeting. "We did make some tough choices to protect and solidify … our position for the long term," he said. "[But] our vision is crystal clear to become the first choice for health and daily living in America."

NEW YORK — The rocketing incidence of flu has been characterized as the most severe in at least a decade, and it's only going to get worse. Or better, depending upon your perspective. 

HOFFMAN ESTATES, Ill. — The CEO of Sears Holdings is stepping down due to unspecified family health reasons, the company said.

Sears, the parent company of Kmart, said Lou D'Ambrosio would step down on Feb. 2, the end of the company's fiscal year. Edward Lampert will assume the role of CEO and chairman, while D'Ambrosio will remain on the board until the company's next annual meeting, in May 2013.

SAN FRANCISCO — While pressure to grow will drive more large drug makers to pursue mergers and acquisitions, diminished resources and competition from biotech and specialty pharmaceutical companies will challenge their ability to do so, according to a new report.