McKesson Corporation (NYSE:MCK) Plans Dividend Increase - $0.94 Per Share

Key Points

• McKesson announced a quarterly dividend of $0.94 per share, payable on October 1 to shareholders of record on September 1. The new payout is a 14.6% increase from the prior $0.82 quarterly dividend.
• The dividend implies an annualized yield of about 0.5%, and McKesson has a long track record of dividend growth, raising its payout every year for the last 17 years. Its payout ratio remains low, suggesting the dividend is well covered by earnings.
• McKesson recently reported quarterly earnings of $11.69 per share, topping analyst estimates, though revenue came in below expectations. The stock was down about 1.8% in Wednesday trading.

McKesson Corporation (NYSE:MCK - Get Free Report) announced a quarterly dividend on Tuesday, July 21st. Investors of record on Tuesday, September 1st will be paid a dividend of 0.94 per share on Thursday, October 1st. This represents a c) annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Tuesday, September 1st. This is a 14.6% increase from McKesson's previous quarterly dividend of $0.82.

McKesson has raised its dividend payment by an average of 0.1%annually over the last three years and has raised its dividend every year for the last 17 years. McKesson has a dividend payout ratio of 7.8% meaning its dividend is sufficiently covered by earnings. Research analysts expect McKesson to earn $49.96 per share next year, which means the company should continue to be able to cover its $3.28 annual dividend with an expected future payout ratio of 6.6%.

McKesson Stock Down 1.8%

NYSE:MCK traded down $14.89 during trading hours on Wednesday, reaching $813.95. The company had a trading volume of 710,477 shares, compared to its average volume of 942,314. The stock has a 50-day moving average of $775.33 and a two-hundred day moving average of $838.48. McKesson has a one year low of $637.00 and a one year high of $999.00. The firm has a market capitalization of $95.30 billion, a PE ratio of 21.16, a PEG ratio of 1.37 and a beta of 0.31.

McKesson (NYSE:MCK - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The company reported $11.69 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $11.56 by $0.13. McKesson had a negative return on equity of 345.35% and a net margin of 1.18%.The company had revenue of $96.30 billion during the quarter, compared to analysts' expectations of $101.35 billion. During the same period last year, the business earned $10.12 earnings per share. The business's revenue was up 6.0% on a year-over-year basis. McKesson has set its FY 2027 guidance at 43.800-44.600 EPS. As a group, sell-side analysts expect that McKesson will post 44.28 earnings per share for the current year.

About McKesson

McKesson Corporation NYSE: MCK is a global healthcare services and distribution company that supplies pharmaceuticals, medical-surgical products and health care technology solutions. Founded in 1833 and headquartered in Irving, Texas, McKesson operates across the drug distribution and healthcare services value chain, connecting manufacturers, pharmacies, hospitals and health systems to help manage the movement of medicines and clinical supplies.

The company's core activities include pharmaceutical wholesale distribution and logistics, specialty pharmacy services, and the provision of medical-surgical supplies to acute and non-acute care providers.

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