The 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 fourteenth stock this 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 I'll review the first of five healthcare sector stock candidates vying to be that fourteenth selection in the Vista portfolio.

My subject today is a large-cap medical distribution company named Cardinal Health Inc. Its trading ticker symbol is CAH.  This is my second report on Cardinal Health Inc for Vista and it has yet to be selected for any of my portfolios (CAH).

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 Health's price per share closed at $55.40 yesterday. A year ago its price was $54.87. Price is up $0.53 or about 0.9% on the year.

If Cardinal Health's stock trades in the range of $42 to $62 this next year, its recent $55.40 price might rise by $4.60 to reach $60.00 by December 8, 2021. 

CAH Dividends

Cardinal Health's most recently declared Quarterly dividend was $0.4859 payable January 15th. Dividends are estimated to total $1.94 per share annually and yield 3.51% at yesterday's $55.40 closing price.

CAH Gains?

Adding the $1.94 annual anticipated dividend to my $4.60 optimistic estimate of Cardinal Health Inc's price upside shows a $6.54 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little over $1,000.00 today in  Cardinal Health Inc at $55.40 and we would buy 18 shares CAH stock.

A $10 broker fee (if any) paid half at purchase and half at sale could cost us  about $0.56 per share.

Subtract that maybe $0.56 brokerage cost from my estimated  $6.54 gross gain per share results in a net gain of $5.98 X 18 shares = $107.64 for a 10.75% net gain on a $997.20 investment.

So it goes that Cardinal Health Inc shows a possible 10.75% net gain including a 3.5% 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.