McKesson Corporation (MCK) will raise its quarterly dividend by 2.4 percent to 42 cents per share in 2020. This follows a 5.1 percent dividend hike to $0.41 per share in 2019 and at the same time marks the 13th consecutive year of dividend increases for the healthcare company.

The next dividend will be payable on October 1, 2020, to stockholders of record on September 1, 2020. A new annual dividend rate of $1.68 per share yields 1.1% at a stock price of $152.

McKesson Corporation will now pay an estimated $272 million in dividends to shareholders annually. That compares to a market cap of approximately $24.6 billion for the company based on a stock price of $152.

The company has now raised its dividend 13 straight calendar years without announcing a dividend hike every year. McKesson skipped hikes in 2016, 2014 and 2012 but did pay shareholders more dividend every year if we look at the calendar years.

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This latest 2.4 percent dividend hike is the smallest announced by McKesson in many years, if we exclude the years without a hike announced as described above here. Last year's 5.1 percent hike also was the smallest increase in more than a decade and because of this year's 2.4 percent hike the average annual dividend growth rate over the last 5 years drops below 10 percent for the first time in many years. McKesson last hiked the dividend by double digits in both 2017 (+21.4%) and 2018 (+14.7%).

McKesson Corporation is a healthcare supply chain management solutions, retail pharmacy, community oncology and specialty care company. McKesson partners with life sciences companies, manufacturers, providers, pharmacies, governments and other healthcare organizations to help provide medicines, medical products and healthcare service. The company has three reportable segments: U.S. Pharmaceutical and Specialty Solutions, European Pharmaceutical Solutions and Medical-Surgical Solutions. McKesson Corporation has paid a dividend every year since 1994.