Cardinal Health Inc. has the ticker symbol CAH and is a large cap member of the healthcare sector as a medical distribution company. This is my third report on Cardinal Health Inc for this Vista folio. I previously discuss CAH on October 6, and December 8, 2020.

Cardinal Health is the third-largest global logistics provider engaged in wholesale pharmaceutical and medical products. 

Image Source: Pixabay

Similar to its closest two peers, the company has evolved over time and has become entrenched in the sourcing and distribution of brand-name and generic pharmaceuticals and related services to hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, and physicians offices. 

Through acquisitions, Cardinal Health has the ability to manufacture commodity products and certain medical devices.

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

Three key data points gauge dividend equities or funds like Cardinal Health Inc. (CAH):

(1) Price

(2) Dividends

(3) Returns

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

CAH Price

Cardinal's price per share closed at $60.48 yesterday. One year ago its price was $51.93.  Thus, the price per share has grown about 16.5% since recovering from last-year's COVID market slump. 

Should Cardinal Health Inc stock trade in the range of $45.00 to $65.00 this year, its recent $60.48 price might rise by $2.52 to reach $63.00 by April 27, 2022. My estimate is over $0.12 lower than the median of nineteen estimates from analysts tracking CAH.

CAH Dividends

Cardinal Health's most recent quarterly dividend paid April 15, was $0.486 which equates to $1.94 annually yielding 3.21% at yesterday's $60.48 closing price.CAH has paid quarterly dividends increasing annually for 24 years. 

CAH Returns

Adding the $1.94 annual CAH forward-looking dividend to my $2.52 price upside estimate shows a $4.46 potential gross gain, per share, to be reduced by any costs to trade the shares.  

If we put little over $1,000.00 today in Cardinal Health Inc at $60.48 per share, we'd buy 17 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.59 per share.

Subtract that maybe $0.59 brokerage cost from my estimated $4.46 gross gain per share results in a net gain of $3.87 X 17 shares = $65.79 for a 6.55% net gain on a $1,028.16 investment.

Thus, Cardinal Health Inc. shows a possible 6.5% net gain including a 3.21% forward-looking dividend yield. 

Over the next year at this time, a $1000 investment in CAH could generate $32.10 in cash dividends. And a single share bought at yesterday's closing price was about $60.50! So, if CAH is your kind of medical distribution investment, their single share price is $28.40 greater than the expected annual dividend income from $1,000 invested. This suggests waiting for a pullback to under $50  before adding Cardinal Health Inc. (CAH) to your holdings. 

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 worth.