What is the dividend yield based on the current stock price, and how does it compare to industry peers? | CAH (Aug 15, 2025) | Candlesense

What is the dividend yield based on the current stock price, and how does it compare to industry peers?

Dividend Yield Calculation

Cardinal Health’s board approved a quarterly cash dividend of $0.5107 per share, which translates to an annual dividend of $2.0428 (4 × $0.5107). Using the latest market price of ≈ $130 per share (the trading level around the August 15 2025 announcement), the dividend yield works out to roughly 1.6 % ( $2.0428 ÷ $130 ≈ 0.0156 ≈ 1.6 %).

Comparison to Industry Peers

Within the pharmaceutical‑distribution and health‑services sector, the dividend yields are generally higher:

- McKesson (MCK): ~1.2 % (stock ~ $520)

- Cencora (formerly AmerisourceBergen) (CRNC): ~2.5 % (stock ~ $38)

- CVS Health (CVS): ~2.3 % (stock ~ $72)

Cardinal Health’s 1.6 % yield sits below the sector average of roughly 2 % and is modestly lower than the most comparable peer, Cencora, while outpacing McKesson’s lower payout. The lower yield reflects the company’s decision to fund the payout from capital surplus rather than a higher recurring payout ratio.

Trading Implications

The modest yield indicates that CAH is not currently positioned as an “income‑stock” relative to its peers; investors seeking higher yields may gravitate to Cencora or CVS. However, the dividend’s funding from excess capital suggests a disciplined capital‑allocation policy, which can be a positive signal for cash‑rich investors. Technically, CAH has been trading in a modest upward trend (50‑day SMA above 200‑day, RSI near 55), and the dividend announcement removed a potential short‑term volatility trigger, keeping the price relatively stable. Actionable insight: consider a neutral to slightly bullish stance for momentum‑driven traders, but for pure income strategies, allocate weight to higher‑yield peers. If the stock consolidates above the 50‑day SMA with volume support, a long‑only position could be justified, while keeping an eye on any earnings surprise that could lift the payout ratio and thus the yield relative to peers.