Walgreens increases quarterly dividend

DEERFIELD, Ill. The board of directors at one of the nation's largest drug store chains increased its quarterly dividend 27.3%.

Walgreens said Wednesday its quarterly rose to 17.5 cents per share from the previous rate of 13.75 cents per share. The dividend is payable Sept. 11, to shareholders of record Aug. 19. The dividend increase raises the annual rate from 55 cents per share to 70 cents per share.

"This increase reinforces our commitment to provide meaningful returns to our shareholders and extends our track record of strong annual dividend growth,” said Walgreens president and CEO Greg Wasson. “We are confident in our growth strategies and our ability to generate strong free cash flow in the future."

Walgreens has paid a dividend in 311 straight quarters (more than 77 years) and has raised its dividend for 35 consecutive years. The company has increased its dividend by a compound annual growth rate of 24.3% over the last six years, the company said.