A new portfolio of stocks I started building September 8, at a one stock per week pace for the next year, is named Vista.  I will select its fifth stock this coming weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!

Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)

Today we'll review the second of five healthcare sector stock candidates vying to be the fifth selection for the Vista portfolio.

My subject today is a large-cap medical distribution company, Cardinal Health Inc. Its trading ticker symbol is CAH. This is my first report on Cardinal Health Inc for this Vista dog of the week portfolio. I have previously reviewed it for my other portfolios, however.  

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

Similar to the other 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 physician 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

I use three key data points to gauge dividend equities or funds like Cardinal Health Inc:

(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 $47.14 yesterday. A year ago its price was $46.07. Price rose $1.07 or just over 2.3% last year.

If Cardinal's stock trades in the range of $40 to $60 this next year, its recent $47.14 price might rise by $7.86 to reach $55.00 by October 6, 2021. 

CAH Dividends

Cardinal's most recently declared quarterly dividend was $0.4859 payable October 15th. It will total $1.94 per share annually and yield 4.12% at yesterday's $47.14 closing price.

CAH Gains?

Adding the $1.94 annual anticipated dividend to my $7.86 optimistic estimate of CAH's price upside shows a $9.80 potential gross gain, per share, to be reduced by any costs to trade the shares.  

If we put a little under $1,000.00 today in Cardinal Health Inc at $47.14, we would buy 21 shares of CAH stock.

A $10 broker fee paid half at purchase and half at sale could cost us  $0.48 per share.

Subtract that $0.48 brokerage cost from my estimated $9.80 gross gain per share results in a net gain of $9.32 X 21 shares = $195.72 for a 19.6% net gain on a $989.94 investment.

So it goes that Cardinal Health Inc shows a possible 19.6% net gain including a 4.12% dividend yield. It could be more, it could be less.    

All of the estimates above are speculation based on the past history of Cardinal Health Inc. Only time and money invested in this stock will determine its worth.