McKesson Corporation (NYSE:MCK) Raises Dividend to $0.94 Per Share

McKesson Corporation (NYSE:MCK) declared 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 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 every year for the last 17 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 Stock Down 1.8%

MCK stock traded down $14.89 during midday trading on Wednesday, reaching $813.95. The company’s stock had a trading volume of 710,477 shares, compared to its average volume of 942,314. McKesson has a 52 week low of $637.00 and a 52 week high of $999.00. The stock has a market cap of $95.30 billion, a PE ratio of 21.16, a price-to-earnings-growth ratio of 1.37 and a beta of 0.31. The business’s 50-day simple moving average is $775.33 and its 200-day simple moving average is $838.48.

McKesson (NYSE:MCK) last released its earnings results on Thursday, May 7th. The company reported $11.69 EPS for the quarter, topping analysts’ consensus estimates of $11.56 by $0.13. The firm had revenue of $96.30 billion during the quarter, compared to analyst estimates of $101.35 billion. McKesson had a net margin of 1.18% and a negative return on equity of 345.35%. The business’s quarterly revenue was up 6.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $10.12 EPS. McKesson has set its FY 2027 guidance at 43.800-44.600 EPS. As a group, equities analysts forecast that McKesson will post 44.28 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on MCK. TD Cowen decreased their price objective on McKesson from $1,012.00 to $989.00 and set a “buy” rating for the company in a research note on Tuesday. JPMorgan Chase & Co. cut their target price on McKesson from $1,107.00 to $1,015.00 and set an “overweight” rating on the stock in a research note on Friday, May 8th. Wall Street Zen lowered McKesson from a “buy” rating to a “hold” rating in a research report on Saturday, June 27th. Bank of America lowered their price target on McKesson from $1,040.00 to $1,000.00 and set a “buy” rating for the company in a research note on Monday, April 6th. Finally, Citigroup cut their price target on shares of McKesson from $975.00 to $945.00 and set a “buy” rating on the stock in a research report on Thursday, May 14th. Fourteen equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price 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.