Top 100 stock Cardinal Health (CAH) increases dividend by 3%

Cardinal Health’s (NYSE:CAH) dividend was increased by 3%.  Its overall yield is 2.54%. The firm started paying a dividend in 1983.

Cardinal Health is a very large distributor of pharmaceuticals and medical supplies to pharmacies and hospitals throughout the United States.  It provides pharmaceutical inventory management and sales, procurement, and logistics support. It distributes both branded and generic pharmaceuticals, specialty pharmaceutical, and also provides enhanced services like charge-back administration services and medication therapy management.  The healthcare firm was founded in 1979 and is headquartered in Dublin, Ohio.

Cardinal Health has maintained a three-year growth rate of dividends of 13.3 percent. Cardinal Health currently ranks 1st in dividend yield within the large cap services, drug wholesale category. The quarterly dividend for the July payment will be $0.4624 versus the prior year rate of $0.4489 per share. Cardinal Health is a member of our Top 100 Dividend Stocks.  (see below).

top-100

The dividend will be paid at the new higher rate on July 15, 2017, to shareholders of record at close of business on July 3, 2017. Cardinal Health Inc. is currently priced at $72.63. Listed in the table below are the quarterly dividend payments since 2010.

Date Quarterly Dividend
7/3/2017 0.4624
3/30/2017 0.449
12/29/2016 0.449
9/29/2016 0.449
6/29/2016 0.449
3/30/2016 0.387
12/30/2015 0.387
9/29/2015 0.387
6/29/2015 0.387
3/30/2015 0.343
12/30/2014 0.343
9/29/2014 0.343
6/27/2014 0.343
3/28/2014 0.303
12/30/2013 0.303
9/27/2013 0.303
6/27/2013 0.302
3/27/2013 0.275
12/28/2012 0.275
9/27/2012 0.238
6/27/2012 0.238
3/28/2012 0.215
12/28/2011 0.215
9/28/2011 0.215
6/29/2011 0.215
3/30/2011 0.195
12/29/2010 0.195
9/29/2010 0.195
6/29/2010 0.195
3/30/2010 0.175

Quantitative Analysis of Cardinal Health is based upon our five key criteria for the Top 100 list, which include;

Category Value Score
Dividend Yield 2.54% 255
Dividend Growth (3-7 year avg) 13.6 229
Forward P/E 13.47 119
S&P Financial Rating A- 220
Beta 0.95 143
Total Score 966
% Yield 3 Year Div. Growth Rate 7 Year Div. Growth Rate SPS 2017 P/S Ratio 10 yr P/S Low 10 yr P/S High
2.54% 13.3 13.8 414.85 0.17 0.10 0.30

Positives; (no negative data points)

  • Cardinal Health maintains an investment grade rating of A-.
  • Cardinal Health’s current dividend yield (2.54%) is above its five-year average historical dividend yield.
  • Cardinal Health maintains a beta of 0.95, lower than the average company.
  • Cardinal Health’s dividend yield is above that of the S&P 500 Index.
  • Cardinal Health has paid out a dividend consecutively for the past 34 years.
  • Cardinal Health is trading below its ten-year average price/sales (P/S) ratio.
  • Cardinal Health has a three-year dividend growth rate of 13 percent.

Earnings & Payout Data; 

2016 2015 2014 2013 2012
Earnings per Share 4.32 3.61 3.37 3.29 3.06
Annual Dividend 1.61 1.41 1.25 1.09 0.88
Payout Ratio 37.27% 39.06% 37.09% 33.13% 28.76%
Earnings per Share 2017 (projected) 4.3
Dividend 1.83
Payout Ratio 42.56%

Based on the firm’s financial credit rating, consistent dividend growth and low beta, Cardinal Health Inc. qualifies as one of our Top 100 Dividend Stocks. It currently ranks #33

To receive regular updates of our Top 100 ranked by score and emails on additions or deletions, please use our contact page to get on the list. The most recent update was published in May.    https://thedividendmanager.com/contact-us/

CAH Dividend Yield Range, High/Low

 Current: 2.54%

Lowest 1.46% Mar 20 2015
Highest 2.57% Nov 04 2016
Cardinal Health Inc. Dividend Yield Chart (Click to enlarge)
cah

Chart Explanation:  Dividend growth stocks may be viewed undervalued when the current yield is above historical readings for the past 5 years. In Cardinal Health’s case, its current yield is well above the average, making the firm an intriguing investment candidate.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s