IRVING, Texas - McKesson Corporation (NYSE:MCK), a global healthcare services company, announced a dividend increase of 15% on Wednesday. The new quarterly dividend, set at $0.71 per share, is up from the previous $0.62 per share. This hike marks the eighth consecutive annual increase for the company. Shareholders on record as of September 2, 2024, will be eligible for the dividend, which is payable on October 1, 2024.
Brian Tyler, McKesson's CEO, expressed the company's confidence in its financial health, citing robust fundamentals, a strong balance sheet, and effective cash flow generation as the basis for the dividend increase. Tyler also emphasized McKesson's commitment to a disciplined capital deployment strategy, which aims to foster growth and enhance shareholder value.
McKesson Corporation plays a significant role in the healthcare sector, partnering with various stakeholders, including biopharmaceutical companies, healthcare providers, and governments, to improve health outcomes. The company focuses on delivering insights, products, and services designed to make quality healthcare more accessible and affordable.
This dividend announcement is based on a press release statement from McKesson Corporation.
In other recent news, McKesson Corporation has seen various analyst actions. Baird maintained an Outperform rating and raised the price target to $694, citing a stable outlook and the company's consistent record of surpassing expectations.
Argus also increased its price target to $670, maintaining a Buy rating, indicating confidence in the company's growth trajectory. TD Cowen has raised its share price target for McKesson, citing a robust fiscal year 2025 outlook. However, Jefferies maintained a Hold rating and reduced the price target to $73, ahead of the company's anticipated second-quarter results, due to persistent challenges in certain segments.
These are recent developments following McKesson's fourth-quarter fiscal year 2023 report. The company's Rx Technology Solutions business and positive momentum in Specialty Prescription distribution and services were highlighted as key factors contributing to its valuation.
McKesson's strategic pricing management has led to a resurgence in consumer volume growth, and its initiatives to enhance its offerings with more value-added options are yielding positive results.
In legal news, McKesson is among the companies implicated in the opioid crisis settlements exceeding $46 billion, with a legal fee pool of $2.13 billion set to reimburse law firms involved in the litigation. Congress member Carol Devine Miller has reported selling shares in McKesson, in compliance with transparency requirements.
InvestingPro Insights
Following McKesson Corporation's (NYSE:MCK) announcement of a 15% dividend increase, the company's commitment to shareholder returns is further underscored by its history of consistent dividend growth. An InvestingPro Tip highlights that McKesson has not only raised its dividend for 16 consecutive years but has also maintained dividend payments for an impressive 31 consecutive years. This track record of dividend reliability is a testament to the company's robust financial health and disciplined capital management.
From a financial perspective, McKesson's market capitalization stands strong at $80.03 billion, reflecting its significant presence in the healthcare sector. The company's revenue growth over the last twelve months as of Q4 2024 is reported at 11.65%, indicating a healthy expansion in its operations.
Furthermore, with a P/E ratio of 27.36, and an adjusted P/E ratio for the last twelve months as of Q4 2024 at 22.57, McKesson trades at valuations that investors may find attractive considering its growth and profitability metrics.
InvestingPro Tips also reveal that analysts are optimistic about McKesson's financial performance, with four analysts revising their earnings estimates upwards for the upcoming period. This optimism is likely rooted in the company's strategic initiatives and its ability to navigate the complexities of the healthcare industry effectively. For investors looking for more insights, there are additional tips available on InvestingPro, including analysis on the company's share buyback activity, low price volatility, and its position as a prominent player in the Healthcare Providers & Services industry.
For a deeper dive into McKesson Corporation's financials and to uncover more InvestingPro Tips that can help inform investment decisions, visit https://www.investing.com/pro/MCK.
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