Walgreen Company (WAG), Rite Aid Corporation (RAD): This Executive Is Betting Millions on His Business; Should You Do the Same?

Walgreen Company (NYSE:WAG)’s stock has risen by 39.6% this year, easily outperforming the S&P 500 ETF (SPY) and CVS, which are up 20.8% and 29.1%, respectively in the same period. Although Walgreen has been far behind Rite Aid Corporation (NYSE:RAD), which has risen by 106.5% in 2013, Walgreen’s strengths lie in its solid 2.5% yield, highest return on equity among its peers and reasonable operating margins.

Interestingly, despite the gigantic 38% dividend-hike announced in December 2012, CVS still gives a significantly lower yield than Walgreen.

Therefore, I believe that due to the insider buying, its reach outside of the United States with possibilities of increasing exposure in the emerging markets – particularly with Pessina on board – Walgreen Company (NYSE:WAG) looks attractive as a long-term investment. Moreover, its industry leadership, an expected increase in revenue from new partnerships and loyalty program, coupled with a solid financial position makes it even more appealing.

The article This Executive Is Betting Millions on His Business; Should You Do the Same? originally appeared on Fool.com.

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