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

McKesson Corporation (NYSE:MCK) announced a quarterly dividend on Tuesday, July 21st. Shareholders 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 is Tuesday, September 1st. This is a 14.6% increase from McKesson’s previous quarterly dividend of $0.82.

McKesson has raised its dividend by an average of 0.1%annually over the last three years and has raised its dividend annually for the last 17 consecutive years. McKesson has a dividend payout ratio of 7.8% meaning its dividend is sufficiently covered by earnings. Equities 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 Price Performance

MCK traded down $14.89 during mid-day trading on Wednesday, hitting $813.95. The stock had a trading volume of 710,477 shares, compared to its average volume of 942,314. The stock’s fifty day simple moving average is $775.33 and its 200-day simple moving average is $838.48. The firm has a market capitalization of $95.30 billion, a price-to-earnings ratio of 21.16, a price-to-earnings-growth ratio of 1.37 and a beta of 0.31. McKesson has a 1-year low of $637.00 and a 1-year high of $999.00.

McKesson (NYSE:MCK) last announced its quarterly earnings results on Thursday, May 7th. The company reported $11.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $11.56 by $0.13. McKesson had a net margin of 1.18% and a negative return on equity of 345.35%. The company had revenue of $96.30 billion during the quarter, compared to analyst estimates of $101.35 billion. During the same quarter in the previous year, the business earned $10.12 EPS. The firm’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, research analysts expect that McKesson will post 44.28 earnings per share for the current fiscal year.

Analysts Set New Price Targets

MCK has been the subject of a number of research analyst reports. JPMorgan Chase & Co. decreased their target price on McKesson from $1,107.00 to $1,015.00 and set an “overweight” rating for the company in a research note on Friday, May 8th. Bank of America dropped their price target on McKesson from $1,040.00 to $1,000.00 and set a “buy” rating on the stock in a research report on Monday, April 6th. William Blair assumed coverage on McKesson in a report on Tuesday, April 28th. They set an “outperform” rating on the stock. Weiss Ratings lowered McKesson from a “buy (b)” rating to a “buy (b-)” rating in a research report on Tuesday, July 7th. Finally, Wall Street Zen cut McKesson from a “buy” rating to a “hold” rating in a research note on Saturday, June 27th. Fourteen research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat, McKesson currently has an average rating of “Moderate Buy” and an average price target of $959.00.

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.