That portfolio of stocks I've been building since September 3, 2019, named Volio will, by Friday, August 28, hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!
Today I'm reviewing the fourth of five healthcare sector stocks primed to join Volio as the fifth of five representing the sector. One of the stocks I discuss this week could become the fifty-second and last overall selection for Volio!
My subject today is a large-cap medical distribution company named, Cardinal Health Inc. Its trading ticker is CAH. This is my first report on Cardinal Health Inc for this Volio portfolio.
Cardinal Health Inc is the third- largest global logistics provider engaged in wholesale pharmaceutical and medical products.
Similar to its 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 $50.75 yesterday. A year ago its price was $43.83. Price rose $6.92 or about 15.8% last year.
Assuming Cardinal's stock trades in the range of $40 to $60 this next year, its recent $50.75 price might rise by $4.25 to reach $55.00 by August 27, 2021.
CAH Dividends
Cardinal's most recently declared quarterly dividend was $0.4859, payable October 15th. That Q dividend equates to $1.94 annually and yields 3.83% at yesterday's $50.75 share price.
CAH Gains?
Adding the $1.94 annual estimated dividend to my $4.25 optimistic estimate of Cardinal's price upside shows a $6.19 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 $50.75, we would buy 20 shares of (CAH) stock.
A $10 broker fee paid half at purchase and half at sale could cost us $0.50 per share.
Subtract that $0.50 brokerage cost from my estimated $6.19 gross gain per share results in a net gain of 5.59 X 20 shares = $113.80 for a 11.3% net gain on a $1,015.00 investment.
Thus, Cardinal Health, Inc shows a possible 11.3% net gain including a 3.83% dividend yield. It could be more, it could be less.
The above speculation is based on past performance and supposition. Only time and money invested will tell if Cardinal Health, Inc is worth it.
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