Saturday, February 25, 2017

Keep in touch with dividend stock: Cardinal Health, Inc. (CAH)

Cardinal Health, Inc. (NYSE:CAH) share price jumped at US$ 81.85 before falling back to end the trade at US$ 81.73 a share. The dividend stock is -5.28% off a 52-week high stock price of US$ 87.85 but is up 31.16% since hitting the US$ 62.7. Investors are buying the stock with a trailing-twelve-month price-to-earnings (P/E) ratio of 19.66.

After a 0.8% rise from previous close of US$ 81.08, Cardinal Health, Inc. (CAH) has a US$ 25.63 Billion market cap. The company pays a US$ 0.45-cent-per-share quarterly dividend, giving it a 2.2% yield. That brings its full year payout to US$ 1.8 and 39.9% annual payout ratio based on EPS. According to FT, Year on year, both dividends per share and earnings per share excluding extraordinary items growth increased 12.99% and 19.52%, respectively. The positive trend in dividend payments is noteworthy since very few companies in the Biotechnology & Drugs industry pay a dividend. Additionally when measured on a five year annualized basis, both dividend per share and earnings per share growth ranked in-line with the industry average relative to its peers.

The CAH has soared 13.56% year-to-date. The equity has gained steam in recent weeks, with shares up about 17.07% in the past three months. It added 1.63%, climbed 9.48% and jumped 0.85% in the week, one month and six months, respectively. Revenue growth rate was recorded at 3.4% and net income per share was seen moving at a 9.6% rate in the past five years.

Cardinal Health, Inc. (NYSE:CAH) is over -2% above analysts’ consensus price target of US$ 82. The stock has blown through analysts’ low price target of US$ 74, but is still below the high US$ 97 target. On a price appreciation basis over the past 12 months, the stock returned 1.78%.

Financial Times data shows, In 2016, Cardinal Health Inc reported a dividend of 1.55 USD, which represents a 12.99% increase over last year. The 10 analysts covering the company expect dividends of 1.79 USD for the upcoming fiscal year, an increase of 15.50%. The most recent short interest data show 3.56% of the company’s stock are short sold. It would take about 4.47 days to cover all short positions. In terms of volatility, it has a beta coefficient of 0.77 and technical analysis volatility indicator called Average True Range or ATR around 1.35.

Cardinal Health, Inc. (NYSE:CAH) closed 7.53% above its 200-day moving average which many technicians use as a guide to the long-term trend, so stocks above the line are considered to be in longer-term uptrends, while those below it are considered to be in downtrends. The stock is 8.88% above another chart threshold, its 50-day moving average and 6.05% above its 20-day simple moving average.

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Keep in touch with dividend stock: Cardinal Health, Inc. (CAH)

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