McKesson Corporation (NYSE:MCK) Plans Dividend Increase - $0.82 Per Share

Key Points

• McKesson Corporation has increased its quarterly dividend to $0.82 per share, marking a 15.5% rise from the previous dividend of $0.71.
• The company has a dividend payout ratio of 6.8%, indicating that the dividend is well-covered by earnings, with expected earnings of $36.64 per share next year.
• McKesson's stock has received mixed ratings from analysts, with 11 buy ratings and a recent price target increase from $755 to $800 by Bank of America.

McKesson Corporation (NYSE:MCK - Get Free Report) declared a quarterly dividend on Wednesday, July 30th, RTT News reports. Shareholders of record on Tuesday, September 2nd will be paid a dividend of 0.82 per share on Wednesday, October 1st. This represents a c) annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Tuesday, September 2nd. This is a 15.5% increase from McKesson's previous quarterly dividend of $0.71.

McKesson has a dividend payout ratio of 6.8% indicating that its dividend is sufficiently covered by earnings. Research analysts expect McKesson to earn $36.64 per share next year, which means the company should continue to be able to cover its $2.84 annual dividend with an expected future payout ratio of 7.8%.

McKesson Stock Down 0.1%

Shares of NYSE:MCK traded down $0.64 during trading on Friday, reaching $692.90. 157,925 shares of the company traded hands, compared to its average volume of 873,378. The firm has a market capitalization of $86.69 billion, a PE ratio of 26.83, a PEG ratio of 1.45 and a beta of 0.48. McKesson has a 52 week low of $464.42 and a 52 week high of $737.89. The company's 50 day moving average is $716.92 and its two-hundred day moving average is $674.88.

McKesson (NYSE:MCK - Get Free Report) last posted its quarterly earnings results on Thursday, May 8th. The company reported $10.12 EPS for the quarter, beating analysts' consensus estimates of $9.83 by $0.29. The business had revenue of $90.82 billion during the quarter, compared to the consensus estimate of $94 billion. McKesson had a negative return on equity of 201.12% and a net margin of 0.92%. McKesson's revenue for the quarter was up 18.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $6.18 earnings per share. As a group, research analysts anticipate that McKesson will post 32.77 EPS for the current year.

McKesson Company Profile

McKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International. The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs, and other healthcare-related products.