McKesson Co. to Issue Quarterly Dividend of $0.62 (NYSE:MCK)

McKesson Co. (NYSE:MCK) declared a quarterly dividend on Wednesday, April 24th, RTT News reports. Stockholders of record on Monday, June 3rd will be paid a dividend of 0.62 per share on Monday, July 1st. This represents a $2.48 annualized dividend and a dividend yield of 0.47%.

McKesson has increased its dividend payment by an average of 11.8% per year over the last three years and has increased its dividend annually for the last 16 consecutive years. McKesson has a payout ratio of 7.0% indicating that its dividend is sufficiently covered by earnings. Analysts expect McKesson to earn $31.06 per share next year, which means the company should continue to be able to cover its $2.48 annual dividend with an expected future payout ratio of 8.0%.

McKesson Price Performance

Shares of NYSE MCK traded down $0.64 during trading hours on Wednesday, hitting $531.36. 42,328 shares of the stock were exchanged, compared to its average volume of 680,415. The company’s 50 day moving average is $526.12 and its 200 day moving average is $488.15. The firm has a market capitalization of $69.83 billion, a P/E ratio of 24.10, a P/E/G ratio of 1.43 and a beta of 0.45. McKesson has a one year low of $352.34 and a one year high of $543.00.

McKesson (NYSE:MCK) last posted its quarterly earnings data on Wednesday, February 7th. The company reported $7.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $7.05 by $0.69. The business had revenue of $80.90 billion during the quarter, compared to the consensus estimate of $77.93 billion. McKesson had a net margin of 0.99% and a negative return on equity of 262.63%. McKesson’s quarterly revenue was up 14.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $6.90 EPS. Research analysts anticipate that McKesson will post 27.59 earnings per share for the current fiscal year.

Insider Buying and Selling at McKesson

In other McKesson news, CEO Brian S. Tyler sold 3,473 shares of the firm’s stock in a transaction dated Friday, March 15th. The shares were sold at an average price of $524.55, for a total value of $1,821,762.15. Following the completion of the sale, the chief executive officer now owns 43,445 shares in the company, valued at approximately $22,789,074.75. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In related news, CEO Brian S. Tyler sold 3,473 shares of the business’s stock in a transaction that occurred on Friday, March 15th. The shares were sold at an average price of $524.55, for a total transaction of $1,821,762.15. Following the completion of the sale, the chief executive officer now directly owns 43,445 shares of the company’s stock, valued at $22,789,074.75. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Leann B. Smith sold 186 shares of the business’s stock in a transaction that occurred on Tuesday, February 13th. The stock was sold at an average price of $496.00, for a total transaction of $92,256.00. Following the sale, the executive vice president now directly owns 1,511 shares of the company’s stock, valued at $749,456. The disclosure for this sale can be found here. Corporate insiders own 0.21% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the stock. Mizuho increased their price target on shares of McKesson from $450.00 to $505.00 and gave the company a “neutral” rating in a report on Friday, February 9th. SVB Leerink assumed coverage on shares of McKesson in a report on Monday, February 26th. They issued an “outperform” rating and a $600.00 price target for the company. Citigroup increased their price target on shares of McKesson from $530.00 to $575.00 and gave the company a “buy” rating in a report on Thursday, February 8th. Barclays assumed coverage on shares of McKesson in a report on Wednesday, January 3rd. They issued an “overweight” rating and a $537.00 price target for the company. Finally, Morgan Stanley raised their price objective on shares of McKesson from $522.00 to $548.00 and gave the stock an “overweight” rating in a report on Monday, April 15th. Two investment analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company’s stock. According to data from MarketBeat.com, McKesson has an average rating of “Moderate Buy” and a consensus target price of $533.50.

About McKesson

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.