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DUBLIN, Ohio - Cardinal Health (NYSE:CAH), a major player in the distribution of pharmaceuticals and medical products with a market capitalization of $36.19 billion, has announced an increase in its quarterly dividend. The company’s Board of Directors has approved a new dividend rate of $0.5107 per share, which will be sourced from the company’s capital surplus. This continues Cardinal Health’s impressive 43-year streak of consecutive dividend payments.
Shareholders on record as of the close of business on July 1, 2025, will be eligible for the dividend, which is set to be distributed on July 15, 2025. The current dividend yield stands at 1.35%, and according to InvestingPro analysis, the stock is currently trading near its 52-week high, with a remarkable 53.88% return over the past year.
Cardinal Health operates across several sectors within the healthcare industry, including the distribution of pharmaceuticals, medical and laboratory products, and the provision of services to home-health and direct-to-patient operations. The company is also involved in the operation of nuclear pharmacies and manufacturing facilities and offers performance and data solutions. With an overall financial health score rated as "GREAT" by InvestingPro, which offers comprehensive analysis and 20+ additional ProTips for Cardinal Health, the company maintains a strong market position.
This dividend increase is a reflection of Cardinal Health’s financial strategy and its position in the market. The company has been focused on customer-centric initiatives and continuous improvement, leading to the development of innovative solutions that aim to enhance the quality of life for people globally. The company’s strong financial position is evidenced by its ability to sufficiently cover interest payments with cash flows and its moderate debt levels.
The information regarding the dividend increase is based on a press release statement issued by Cardinal Health.
In other recent news, Cardinal Health reported its first-quarter 2025 earnings, exceeding EPS expectations with a figure of $2.35, compared to the projected $2.17. Despite this, the company slightly missed revenue forecasts, reporting $54.9 billion against expectations of $55.32 billion. The company has raised its full-year EPS guidance, reflecting confidence in its future growth trajectory. Additionally, Cardinal Health’s pharmaceutical and other divisions performed well, with pharmaceutical margins expanding and a 14% year-over-year increase in Pharmaceutical Adjusted Operating Income. However, the Global Medical Products Distribution segment faced challenges, with AOI falling short of expectations. Citi analyst Daniel Grosslight raised the price target for Cardinal Health to $157, maintaining a Neutral rating, highlighting the company’s solid performance. The company also announced strategic acquisitions, contributing to its robust performance, particularly in the Nuclear segment. Looking ahead, Cardinal Health anticipates double-digit EPS growth in fiscal 2026, driven by its Pharma and Other segments.
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