Cardinal Health (NYSE:CAH) Announces Dividend Increase to US$1 Per Share

Cardinal Health (NYSE:CAH) recently approved an increase in its quarterly dividend, a move that aligns with the company's notable 21% price increase last quarter. This uptick came despite a general market decline as investors awaited updates on tariffs and the Federal Reserve's decisions. The company's quarterly earnings announcements revealed substantial growth, with net income nearly doubling year over year, which may have buoyed investor sentiment. Additionally, Cardinal Health's partnership with Telix Pharmaceuticals and their ongoing share buyback program might have further bolstered confidence in the company during a period when many stocks experienced volatility and minor declines.

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The recent dividend increase approved by Cardinal Health aligns with its ongoing share buyback program, likely reinforcing investor confidence amid market volatility. Over the last five years, Cardinal Health's total shareholder return, which includes both share price appreciation and dividends, surged by 228.65%. This significant long-term performance stands in strong contrast with the one-year return, where the company outperformed the broader US Healthcare industry, which saw a 10% decline.

Investors appear optimistic about Cardinal Health's strategic acquisitions and their potential impact on revenue and earnings growth. The integration of GI Alliance and ION could expand therapeutic offerings, aligning with analyst forecasts of continued revenue and profit margin enhancement. Although current analyst projections set a price target at US$143.74, just 2.7% above the current price of US$139.84, this suggests analysts view the shares as fairly priced based on expected performance improvements.

Assess Cardinal Health's previous results with our detailed historical performance reports.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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