Is NYSE:CAH suited for dividend investing?

CARDINAL HEALTH INC (NYSE:CAH) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:CAH scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

Dividend Assessment of NYSE:CAH

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:CAH scores a 7 out of 10:

• CAH's Dividend Yield is rather good when compared to the industry average which is at 2.65. CAH pays more dividend than 89.47% of the companies in the same industry.
• CAH has paid a dividend for at least 10 years, which is a reliable track record.
• CAH has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• The dividend of CAH is growing, but earnings are growing more, so the dividend growth is sustainable.

Health Assessment of NYSE:CAH

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:CAH, the assigned 5 for health provides valuable insights:

• An Altman-Z score of 5.49 indicates that CAH is not in any danger for bankruptcy at the moment.
• CAH has a better Altman-Z score (5.49) than 90.35% of its industry peers.
• The Debt to FCF ratio of CAH is 1.57, which is an excellent value as it means it would take CAH, only 1.57 years of fcf income to pay off all of its debts.
• With an excellent Debt to FCF ratio value of 1.57, CAH belongs to the best of the industry, outperforming 87.72% of the companies in the same industry.

Evaluating Profitability: NYSE:CAH

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:CAH has earned a 5 out of 10:

• Looking at the Return On Assets, with a value of 1.89%, CAH is in the better half of the industry, outperforming 65.79% of the companies in the same industry.
• The Return On Invested Capital of CAH (17.91%) is better than 95.61% of its industry peers.
• CAH had an Average Return On Invested Capital over the past 3 years of 14.10%. This is significantly above the industry average of 7.74%.
• The 3 year average ROIC (14.10%) for CAH is below the current ROIC(17.91%), indicating increased profibility in the last year.
• CAH's Profit Margin of 0.38% is fine compared to the rest of the industry. CAH outperforms 60.53% of its industry peers.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Check the latest full fundamental report of CAH for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.