Cardinal Health

How Safe Is Cardinal Health’s Dividend?

Cardinal Health (CAH) is 1 of the 3 large U.S. based pharmaceutical distributors who together control ~90% of the industry.

Q3 hedge fund letters, conference, scoops etc

Cardinal Health

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Note: AmerisourceBergen (ABC) and McKesson (MCK) are the others.

The company has a long history of success.  Cardinal Health has increased its dividend for 32 consecutive years, making it a Dividend Aristocrat.

And, Cardinal Health’s stock currently yields 4.2%.  The combination of a long dividend history and a high current yield make Cardinal Health a potentially enticing pick for dividend growth investors.

Note:  I am long CAH.

While Cardinal Health’s dividend history is excellent, the company is facing headwinds today:

  • Intense competition within the pharmaceutical distribution industry
  • The threat of Amazon entering the market
  • Backlash from the opioid epidemic

The above factors have all impacted Cardinal Health’s stock price and/or business performance.

This brings up the question… Is Cardinal Health’s dividend safe?

One of the more recent videos from Sure Dividend examines Cardinal Health’s dividend safety in detail.  Topics covered include:

  1. Dividend safety using earnings
  2. Dividend safety using free cash flow
  3. Recession performance
  4. Debt level

Click below to watch this concise (~5 minute) video now:

Thanks for watching!

Please leave your feedback and thoughts by commenting on YouTube.

P.S.- Cardinal Health appears deeply undervalued now.  We expect total returns of around 18% or more for Cardinal Health at current prices.

Cardinal Health was ranked #9 out of 10 in the recent January 2019 edition of The Sure Dividend Newsletter.

Note:  All of the Top 10 are ranked as buys, including Cardinal Health.

The Sure Dividend Newsletter includes our 10 top dividend growth stocks each month, a detailed portfolio building guide, actionable sell recommendations, and more.

Click here to start your risk free 7 day trial now and see our other top 9 recommendations.

Thanks,

Ben Reynolds

Sure Dividend

ValueWalk readers can click here to instantly access an exclusive $100 discount on Sure Dividend’s premium online course Invest Like The Best, which contains a case-study-based investigation of how 6 of the world’s best investors beat the market over time.


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