McKesson Surges on 15% Dividend Hike and $580M High-Volume Rally

McKesson Corporation (MCK) rose 1.74% on August 4, with a trading volume of $580 million. The company announced a 15% increase in its quarterly dividend to $0.82 per share, maintaining a payout ratio of 10.99% and an annualized yield of 0.5%. Institutional investors showed mixed activity, with LSV Asset Management reducing its stake by 43.4% in Q1, while GAMMA Investing and Marshall Wace significantly increased holdings in Q4. Insider sales included CEO Brian Tyler offloading 19,371 shares and EVP Leann Smith selling 1,248 shares, reflecting a 41% and 32.26% reduction in their respective positions.

The company reported Q2 earnings of $10.12 per share, exceeding estimates by $0.29, with revenue of $90.82 billion, up 18.9% year-over-year. Analysts upgraded or downgraded the stock, averaging a "Moderate Buy" rating and a $710.17 price target. Recent 13F filings revealed aggregate hedge fund holdings declined by 215,697 shares between March and June, though GAMMA Investing and others boosted their stakes. The stock’s 52-week range of $464.42–$737.89 highlights its volatility amid shifting institutional positions.

A backtested strategy of purchasing top 500 high-volume stocks and holding for one day generated a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. This underscores liquidity-driven momentum, particularly in volatile markets, as high-volume stocks like MCK experience amplified price swings due to concentrated trading activity. The performance aligns with McKesson’s recent price action, reflecting the influence of institutional and algorithmic trading on short-term outcomes.