Why NYSE:CAH is a Top Pick for Dividend Investors.

Consider CARDINAL HEALTH INC (NYSE:CAH) as a top pick for dividend investors, identified by our stock screening tool. NYSE:CAH shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

A Closer Look at Dividend for NYSE:CAH

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:CAH earns a 7 out of 10:

• Compared to an average industry Dividend Yield of 3.10, CAH pays a better dividend. On top of this CAH pays more dividend than 86.84% of the companies listed in the same industry.
• CAH has been paying a dividend for at least 10 years, so it has 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.
• 39.27% of the earnings are spent on dividend by CAH. This is a low number and sustainable payout ratio.
• The dividend of CAH is growing, but earnings are growing more, so the dividend growth is sustainable.

Health Assessment of NYSE:CAH

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

• An Altman-Z score of 5.71 indicates that CAH is not in any danger for bankruptcy at the moment.
• CAH's Altman-Z score of 5.71 is amongst the best of the industry. CAH outperforms 89.47% of its industry peers.
• CAH's Debt to FCF ratio of 4.79 is amongst the best of the industry. CAH outperforms 80.70% of its industry peers.

What does the Profitability looks like for NYSE:CAH

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:CAH scores a 5 out of 10:

• The Return On Assets of CAH (2.93%) is better than 71.05% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 20.74%, CAH belongs to the top of the industry, outperforming 96.49% of the companies in the same industry.
• CAH had an Average Return On Invested Capital over the past 3 years of 14.10%. This is significantly above the industry average of 8.10%.
• The last Return On Invested Capital (20.74%) for CAH is above the 3 year average (14.10%), which is a sign of increasing profitability.
• CAH has a Profit Margin of 0.56%. This is in the better half of the industry: CAH outperforms 61.40% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.