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Pharmaceutical and medical supply firm
McKesson (MCK - Get Report), one of TheStreet Ratings'
top-rated distributors stocks, is another name that's been benefiting from relative strength in the healthcare sector; shares are already up more than 20% this year thanks to strong fundamental performance. Now the company is trying to leverage its success in its core business to become a major name in the medical IT business.
Even though McKesson still earns the vast majority of its profits through selling pharmaceuticals and medical supplies, its increasing exposure to medical IT should be looked on favorably by investors right now. Demand for medical IT products is increasing as legislation pushes medical records and paperwork into digital form. With its expansive customer Rolodex and resources, the company should be able to grow its IT initiative faster than many of its peers.
Recently, McKesson raised its dividend by 11.1%. That brings the company's quarterly payout to 20 cents per share.
McKesson received big bets in the first quarter from
Steven Cohen's SAC Capital as well as
Lee Ainslie's Maverick Capital.
For the rest of this week's dividend stocks, check out the
Dividend Stocks for the Week portfolio on Stockpickr.
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-- Written by Jonas Elmerraji in Baltimore.