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Cardinal Health Inc, known by the ticker symbol CAH,  is a large-cap medical supplies distributor, operating in the healthcare business sector. This is my first report on CAH for this Viital stock portfolio. I last reviewed it on April 27th, 2021 for my Vista portfolio five. 

Cardinal Health is a leading pharmaceutical wholesaler, engaged in the sourcing and distribution of branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail-order), hospitals networks, and healthcare providers. 

Along with AmerisourceBergen and McKesson, the three compose well over 90% of the U.S. pharmaceutical wholesale industry. Cardinal Health also supplies medical-surgical products and equipment to healthcare facilities in North America, Europe, and Asia.

It has a collaboration agreement with Journey Biosciences, Inc. 

Cardinal Health, Inc. was founded in 1979 and is headquartered in Dublin, Ohio.

Three key data points gauge any dividend equity or fund such as Cardinal Health Inc, (CAH):

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

CAH Price

Cardinal's price per share was $51.96 as of yesterday's market close. One year ago its price was $54.26. Therefore CAH's share price fell $2.64 or just about 4.9% in the past year.

If CAH's stock trades in the range of $45.00 to $60.00 this next year, its recent $51.96 share price might rise by $4.04 to reach $56.00  by February 7, 2023. This estimate is just eight cents under the median of one-year target single share prices from 13 analysts tracking the stock for brokerage houses.

CAH Dividends

Cardinal's most recent quarterly dividend of $0.49 was paid to shareholders on January 15th, to those on record as of December 31st.  The CAH estimated Annual dividend payout per share of $1.96 yields 3.78% per yesterday's $51.96. closing price. 

CAH has paid quarterly dividend payouts increasing annually since January 1994. That stretch-marked 28 years last month.

CAH Returns

Adding the $1.96 annual estimated CAH forward-looking dividend to its estimated one-year share price upside of $4.04 shows a $6.00 potential gross gain, per share, to be reduced by any costs to trade CAH shares.  

At yesterday's $51.96 price per share, a little under $1000 would buy 19 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at the sale and might cost us about $0.53 per share.

Subtract that maybe $0.53 brokerage cost from my estimated $6.00 gross gain estimate per share results in a net gain of $5.47 X 19 shares = $103.83 for a 10.38% net gain on a $987.24 investment.

So it is that Cardinal Health Inc, (CAH) shows a possible 10.83% net gain including a 3.78% forward estimated dividend yield. 

Over the next year at this time our $1000 investment in Cardinal Health Inc, (CAH) could generate $37.80 in cash dividends alone. Note that a single share of CAH stock bought at yesterday's share price of $51.96 is over $14 more than the dividend income from $1000.00 invested. So, by my dogcatcher ideal, now is not the time to pick up Cardinal Health Inc, (CAH) shares. The estimated next-year dividend from $1K invested is $14.16 less than CAH's single share price. Consider yourself alerted. It's a sign!  Wait for CAH shares to pull back below $45.00.

All of the estimates above are speculation based on the past history of Cardinal Health Inc, (CAH). Only time and money invested in this stock will determine its market value.