CAH - Cardinal Health's Valuation Makes The Name Unattractive

2024-05-26 08:44:27 ET

Summary

• Cardinal Health has a proven track record of dividend growth and has paid an increasing dividend for almost 40 consecutive years.
• The company's third quarter earnings results showed revenue growth of 9% and adjusted earnings per share of $2.08, beating expectations.
• However, the stock's valuation is currently above its average, making it an unattractive investment option. The lack of dividend growth in recent years is also concerning.

As a dividend growth investor, health care is one of my favorite sectors as you can find companies that have proven track records for growth that allows for lengthy dividend growth streaks.

This sector tends to be more recession proof than most others, as people will seek out treatments for aliments regardless of the state of the economy. These companies are more likely to produce steady revenue and earnings growth, which can allow for shareholders to receive annual dividend raises....

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