I believe that AmerisourceBergen is an extremely high-quality dividend growth stock that is currently an attractive total return investment based on low valuation and above-average potential growth of earnings and dividends. Consequently, I also believe that the political risk associated with medical companies in general and AmerisourceBergen specifically is already priced in.
Furthermore, the possibility that Walgreens Boots Alliance may make a play for the remaining shares in the company it does not already own provides an interesting and reasonable short-term speculation. AmerisourceBergen is certainly cheap enough at current levels for Walgreens to make an offer above current valuation and still purchase the shares at a sensible valuation. However, I don’t believe the acquisition needs to occur in order to make AmerisourceBergen an attractive long-term dividend growth investment.
