Let’s take a moment of silence for Walgreens, a founding member of the Dividend Aristocrats club… aka the group of stocks that it's fans could care less if the share price stays stagnant for years or barely keeps up with inflation... as long as they get that divvy every quarter… Well, guess what? That divvy’s gone. And now, so is Walgreens.

After nearly 100 years as a publicly traded company, Walgreens is officially going private in a $10 billion deal with Sycamore Partners, the private equity firm that specializes in flipping struggling retail brands like Ann Taylor Loft, Staples, and Express. Walgreens’ stock popped over 7% on the news, presumably because investors were just relieved to stop watching their shares fall further.

Don’t forget, Walgreens’ stock price wasn’t always stuck in quicksand. Back in 2015, the company was valued at over $100 billion as investors bought into its health-care expansion dreams. But then… Amazon happened. CVS happened. Dollar General happened. And Walgreens did what Walgreens does best… lagging behind while competitors made actual moves.

Hit the time travel button back to today, and Walgreens’ market cap has sunk to under $10 billion (a 90% collapse that will have them regretting not selling a decade ago). If there’s a bright side, it’s that at least Walgreens didn’t go the Rite Aid route and end up in bankruptcy court, though that’s about the only small win they can claim at this point.

You know it’s bad when a Dividend Aristocrat stops paying its dividend for the first time since 1933… yes, the Great Depression. Walgreens suspended its quarterly payout earlier this year, citing the need to free up cash for litigation, debt refinancing, and their ongoing retail pharmacy "turnaround."

CEO Tim Wentworth tried to spin the move, saying, “We are making progress against our ambitious turnaround strategy, but meaningful value creation will take time, focus, and change that is better managed as a private company.” But what he really meant was… “We need to go private so we can clean up this mess without CNBC airing our dirty laundry every quarter.”

The real issue was that Walgreens simply didn’t evolve fast enough. While CVS was buying Aetna and turning itself into a healthcare monopoly… Walgreens was busy doubling down on retail pharmacies, a business model that has been under assault from all sides.

Once the deal closes later this year, Walgreens will exit the public markets, ending a nearly century-long run on Wall Street. Shareholders will get $11.45 per share in cash, with the possibility of an additional $3 per share if certain assets get monetized.

As for Walgreens itself? Sycamore Partners will take the reins, presumably aiming to cut costs, restructure operations, and eventually flip it for a profit (the usual stuff when a company goes private). Given Sycamore’s track record, don’t be shocked if Walgreens starts looking a lot skinnier… and maybe even gets broken up into smaller pieces down the road.

And don’t mistake this as only a Walgreens problem. The entire retail pharmacy industry is under pressure. Walgreens just happened to be the weakest link.

And for all you dividend investors out there, you’re going to have to find another company to pay you that quarterly dividend while the share price goes sideways until the year 3000.

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Stock.News has positions in Amazon.