McKesson Co. (NYSE:MCK) Plans Quarterly Dividend of $0.71

McKesson Co. (NYSE:MCK) announced a quarterly dividend on Thursday, August 1st, RTT News reports. Stockholders of record on Monday, September 2nd will be given a dividend of 0.71 per share on Tuesday, October 1st. This represents a $2.84 dividend on an annualized basis and a dividend yield of 0.45%. The ex-dividend date of this dividend is Friday, August 30th. This is a boost from McKesson’s previous quarterly dividend of $0.62.

McKesson has raised its dividend by an average of 11.8% per year over the last three years and has increased its dividend every year for the last 16 years. McKesson has a payout ratio of 6.9% indicating that its dividend is sufficiently covered by earnings. Analysts expect McKesson to earn $35.70 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 6.9%.

McKesson Price Performance

Shares of McKesson stock opened at $629.09 on Friday. The business has a fifty day simple moving average of $587.35 and a two-hundred day simple moving average of $545.68. McKesson has a 1 year low of $404.72 and a 1 year high of $631.37. The company has a market capitalization of $81.74 billion, a price-to-earnings ratio of 28.11, a P/E/G ratio of 1.44 and a beta of 0.45.

McKesson (NYSE:MCK) last released its quarterly earnings results on Tuesday, May 7th. The company reported $6.18 EPS for the quarter, missing the consensus estimate of $6.34 by ($0.16). McKesson had a net margin of 0.97% and a negative return on equity of 245.88%. The business had revenue of $76.36 billion during the quarter, compared to analyst estimates of $79.32 billion. During the same quarter last year, the company posted $7.19 earnings per share. The company’s revenue was up 10.8% on a year-over-year basis. As a group, equities analysts anticipate that McKesson will post 31.68 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Brian S. Tyler sold 3,753 shares of the business’s stock in a transaction dated Wednesday, July 3rd. The stock was sold at an average price of $580.92, for a total transaction of $2,180,192.76. Following the completion of the transaction, the chief executive officer now owns 86,092 shares of the company’s stock, valued at $50,012,564.64. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In other McKesson news, CEO Brian S. Tyler sold 3,753 shares of McKesson stock in a transaction dated Wednesday, July 3rd. The stock was sold at an average price of $580.92, for a total transaction of $2,180,192.76. Following the completion of the sale, the chief executive officer now owns 86,092 shares of the company’s stock, valued at $50,012,564.64. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Leann B. Smith sold 600 shares of the firm’s stock in a transaction dated Tuesday, June 11th. The shares were sold at an average price of $585.53, for a total value of $351,318.00. Following the transaction, the executive vice president now directly owns 2,022 shares in the company, valued at $1,183,941.66. The disclosure for this sale can be found here. Insiders sold 29,567 shares of company stock worth $16,691,841 in the last three months. Corporate insiders own 0.11% of the company’s stock.

Analyst Upgrades and Downgrades

MCK has been the topic of several research reports. UBS Group lifted their price target on shares of McKesson from $620.00 to $630.00 and gave the company a “buy” rating in a report on Wednesday, May 8th. Evercore ISI raised their price objective on McKesson from $600.00 to $660.00 and gave the company an “outperform” rating in a report on Tuesday, July 9th. Morgan Stanley increased their target price on McKesson from $522.00 to $548.00 and gave the company an “overweight” rating in a research report on Monday, April 15th. StockNews.com raised McKesson from a “buy” rating to a “strong-buy” rating in a research note on Tuesday, July 23rd. Finally, Robert W. Baird lifted their target price on shares of McKesson from $679.00 to $694.00 and gave the stock an “outperform” rating in a research report on Tuesday, July 9th. Two analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $599.33.

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.