During the nine-month period ending May 31 (its most recent earnings report), the company has spent the following:
$7.1 billion on acquisitions and business investments.
$5.2 billion on debt payments.
$1.6 billion on capital purchases.
$1.2 billion on cash dividends.
But the company's operating cash flow during that period was just $1.2 billion -- barely enough to cover just its dividend payments. And it still has over $8.8 billion in long-term debt on its books.
Walgreens has, however, been making moves to try and find ways to save costs, recently announcing that it has found another $600 million in cost savings. Unfortunately, until the company can show investors that it's in a much stronger financial position, it could be difficult to attract growth investors or convince dividend investors that the payout isn't in danger. Walgreens stock isn't only trading near its 52-week low; it also hasn't been trading this low in over a decade. Investors are concerned about the company's future.