Walgreen (NYS: WAG) recently put up weak numbers and is blaming its fallout with Express Scripts (NAS: ESRX) for the trauma. While this is the case, it's easy to forget that it was Walgreen's own management that parted with Express Scripts at the end of 2011. After a rough patch, the two companies have agreed to play nice again, and Walgreen is filling Express Scripts prescriptions beginning this month. 

However, that doesn't mean the bleeding will stop anytime soon. Walgreen pushed a lot of customers into competitors' arms, and those are hard customers to earn back. See more in the following video.

This whole sector isn't inviting to investors now, even despite the great dividends. If it's passive income you seek, look elsewhere. The Motley Fool has compiled a special free report outlining our nine top dependable dividend-paying stocks. It's called  "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your complimentary copy today at no cost! Just click here to discover the winners we've picked.

The article Why This Pharmacy Is Still Bleeding originally appeared on Fool.com.

Austin Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Express Scripts. Motley Fool newsletter services recommend Express Scripts. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

Investing in Real Estate

Learn the basics of investing in real estate.

View Course »

What Is Your Risk Tolerance?

Answer the question "What type of investor am I?".

View Course »

Add a Comment

*0 / 3000 Character Maximum