McKesson Corporation (NYSE:MCK) to Issue Quarterly Dividend of $0.94

Key Points

• McKesson declared a quarterly dividend of $0.94 per share, payable January 4 to shareholders of record December 1. The dividend implies $3.76 in annual payments and a 0.4% yield, with a 17-year history of consecutive annual increases.
• The dividend appears well covered, with a current payout ratio of 9.0% and an expected future payout ratio of 7.5%. McKesson recently reported quarterly EPS of $9.93, exceeding estimates, while revenue rose 7.7% year over year to $105.38 billion.
• McKesson shares traded at $1,014.79, near their 52-week high of $1,030.27. Institutional investors own approximately 85.07% of the company, while insiders have sold about $1.16 million of stock over the past 90 days.

McKesson Corporation (NYSE:MCK - Get Free Report) declared a quarterly dividend on Tuesday, October 20th. Stockholders of record on Tuesday, December 1st will be paid a dividend of $0.94 per share on Monday, January 4th. This represents a $3.76 annualized dividend and a dividend yield of 0.4%. The ex-dividend date of this dividend is Tuesday, December 1st.

McKesson has increased its dividend payment by an average of 0.1% per year over the last three years and has increased its dividend annually for the last 17 consecutive years. McKesson has a payout ratio of 9.0% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect McKesson to earn $49.99 per share next year, which means the company should continue to be able to cover its $3.76 annual dividend with an expected future payout ratio of 7.5%.

McKesson Stock Performance

Shares of NYSE:MCK traded down $15.33 during trading on Wednesday, reaching $1,014.79. 772,054 shares of the stock traded hands, compared to its average volume of 928,098. The stock has a market cap of $118.31 billion, a P/E ratio of 27.16, a price-to-earnings-growth ratio of 2.01 and a beta of 0.30. The stock has a 50-day moving average of $902.90 and a two-hundred day moving average of $839.47. McKesson has a 52-week low of $723.68 and a 52-week high of $1,030.27.

McKesson (NYSE:MCK - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $9.93 earnings per share for the quarter, topping analysts' consensus estimates of $9.56 by $0.37. The company had revenue of $105.38 billion during the quarter, compared to analyst estimates of $103.88 billion. McKesson had a net margin of 1.12% and a negative return on equity of 253.21%. The firm's revenue for the quarter was up 7.7% on a year-over-year basis. During the same period in the previous year, the business earned $8.26 EPS. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. Sell-side analysts expect that McKesson will post 44.71 earnings per share for the current year.

Insider Activity at McKesson

In other McKesson news, CAO Napoleon B. Rutledge, Jr. sold 111 shares of the stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $891.45, for a total value of $98,950.95. Following the transaction, the chief accounting officer directly owned 521 shares in the company, valued at approximately $464,445.45. This trade represents a 17.56% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bradley E. Lerman sold 301 shares of the stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $892.33, for a total transaction of $268,591.33. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 1,212 shares of company stock worth $1,164,182. 0.06% of the stock is owned by company insiders.

Institutional Investors Weigh In On McKesson

Hedge funds have recently modified their holdings of the business. BlackRock Inc. bought a new stake in shares of McKesson in the second quarter valued at about $8,156,743,000. Bank of America Corp DE grew its holdings in McKesson by 2.4% during the 1st quarter. Bank of America Corp DE now owns 1,538,726 shares of the company's stock worth $1,331,552,000 after acquiring an additional 35,916 shares in the last quarter. Swedbank AB grew its holdings in McKesson by 13.5% during the 1st quarter. Swedbank AB now owns 1,005,610 shares of the company's stock worth $870,215,000 after acquiring an additional 119,327 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in McKesson by 3.3% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 922,573 shares of the company's stock worth $697,096,000 after acquiring an additional 29,747 shares in the last quarter. Finally, Legal & General Group Plc purchased a new position in McKesson during the 2nd quarter valued at about $656,566,000. Institutional investors own 85.07% of the company's stock.

McKesson Company Profile

McKesson Corporation is a healthcare services and information technology company that distributes pharmaceuticals and medical products to pharmacies, hospitals, health systems, physicians and other healthcare providers. The company also provides technology, data and business solutions designed to support prescription management, pharmacy operations and patient care.

McKesson's principal activities include pharmaceutical distribution, medical-surgical supply distribution, specialty pharmaceutical services and oncology care support.

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