Pharmaceutical and medical supply firm McKesson (MCK), 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. And if you haven't already done so, join Stockpickr today to create your own dividend portfolio. -- Written by Jonas Elmerraji in Baltimore.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV