NEW YORK (TheStreet) -- While dividend stocks have been beaten up lately, TheStreet's David Peltier believes there is value to be found in Walgreen (WAG).

The prescription-filling, convenience store giant has been very consistent as to when it will raise its dividend.

According to Peltier, Walgreen has raised its dividend in the month of July every year, for the past 37 years. Why should we expect it to stop now?

He also pointed to the company's ability to pay the dividend -- Walgreen only shells out about half of its earnings to do so. However, with the stock on a tear this year, it might be better to hold off.

With shares at $44, the stock is up approximately 20% on the year. But a pullback to the $42 range could be enough of a reason to get into the name ahead of the dividend increase, he concluded.

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Rocco Pendola's Weekly Options Newsletter. Focuses on short- to intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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