Bristol Gate Capital Partners Inc. on McKesson Corporation
Thesis
Bristol Gate holds McKesson as a source of durable earnings and dividend growth tied to pharmaceutical distribution. Adjusted earnings per share increased 20% in the reported quarter, and distribution of GLP-1 medicines reached $15 billion, growing 24% year over year. Management raised its full-year guidance and increased the dividend by 15%. This was McKesson’s tenth consecutive annual dividend increase, reinforcing Bristol Gate’s preference for companies that finance rising shareholder payouts from growing operations.
“management raised its full-year guidance alongside a 15% dividend increase, its tenth consecutive annual raise.”