McKesson Corporation

MCK
Healthcare
$766.08
0.32%Overvalued

McKesson Corporation (MCK) is a Healthcare company that currently yields 0.32% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $208.70 and the overvaluation threshold at $690.73. McKesson Corporation holds a quality score of 40/100 (Average), reflecting 14 consecutive years of dividend growth with a 8% payout ratio. The 5-year dividend CAGR stands at -5.0%.

MCK Dividend Yield History — Weiss Valuation

Underval. $208.70Overval. $690.73

Distance to undervalued

Entry price is stretched

Needs 72.8% downside to reach the Weiss buy zone

Undervaluation starts near $208.70, where the annual dividend would imply roughly 1.19% yield. That is 0.86% above today's yield.

Buy-zone price

$208.70

Target yield

1.19%

Research checklist

What to clear before buying the yield

Updated May 25, 2026

Dividend durability

14Y

Long dividend history supports a deeper look.

Earnings payout

8%

Earnings coverage leaves room for noise.

Cash payout

7%

Free cash flow coverage supports the payment.

Dividend growth

-5.0%

Lower growth changes the return trade-off.

What changed

What changed since the last update

2026-05-232026-05-25

No major change in signal, yield, price, quality, or payout since the last update.

Why Now?

McKesson Corporation is trading near its historical overvaluation band.

Current yield 0.3% vs historical max 1.2% (28% of maximum).

Recent dividend history shows no sustained growth streak.

Conservative payout ratio of 8%.

What matters now

Read the signal before the headline yield

Valuation is the brake here: the yield is compressed versus its own history.

The 40/100 quality score says the headline yield needs extra skepticism.

Start by checking whether payout coverage and business durability still support the dividend.

MCK Dividend Income Projection — DRIP Compounder

Dividend Compounder (DRIP)

$

Year 1 Income

$32

Year 10 Income

$33

Yield on Cost

0.33%

Total Income

$328

Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.

More research

Full price history & technical analysis

TradingView ↗

Fundamentals, valuation & analyst ratings

FinViz ↗

Moat rating & analyst fair value

Morningstar ↗

MCK Dividend Quality Score

Quality Score

40/ 100

Average

Payout Ratio25/25
Dividend Streak0/25
Growth (CAGR 5Y)0/20
Yield vs History0/15
FCF Coverage15/15

Key Metrics

Current Price$766.08
Annual Dividend$2.48
Current Yield0.32%
Yield — Max (10Y)1.16%
Yield — Min (10Y)0.42%
Undervalued Below$208.70
Overvalued Above$690.73
Payout Ratio8.26%
CAGR Dividend 5Y-5.0%
CAGR Dividend 10Y2.6%
Years No Cut

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14
consecutive years of dividend growth