Cardinal Health Board of Directors Approves Increase to Quarterly Dividend

Rhea-AI Summary

Cardinal Health (CAH) has announced an increase in its quarterly dividend to $0.5056 per share, payable on July 15, 2024, to shareholders of record as of July 1, 2024.

Positive

• Increased quarterly dividend to $0.5056 per share.

• Payment date set for July 15, 2024.

Negative

• None.

Insights

Financial Analyst

The recent announcement by Cardinal Health to increase its quarterly dividend to $0.5056 per share represents a strategic move to enhance shareholder value. Dividend increases typically signal a company's confidence in its financial stability and future earnings potential. From a valuation standpoint, the hike could make Cardinal Health more attractive to income-focused investors who prioritize steady dividend income. However, one must consider the payout ratio, which is the proportion of earnings paid out as dividends. If the payout ratio is too high relative to the company's earnings, it could indicate that the dividend is unsustainable in the long-term. Investors should also keep an eye on the company's cash flow statements to ensure the dividend payments are well-covered by free cash flow. In terms of market reaction, stocks of companies that increase dividends can often see a positive price adjustment as the market digests the news. However, it is also important to contextualize such an increase within the larger industry landscape and the company's own dividend history to fully gauge the implications of this decision.

DUBLIN, Ohio, May 7, 2024 /PRNewswire/ -- Cardinal Health (NYSE: CAH) announced today that its Board of Directors approved an increase to its quarterly dividend, to $0.5056 per share, out of the Company's capital surplus. The dividend will be payable on July 15, 2024 to shareholders of record at the close of business on July 1, 2024.

About Cardinal Health 
Cardinal Health is a distributor of pharmaceuticals, a global manufacturer and distributor of medical and laboratory products, and a provider of performance and data solutions for health care facilities. With more than 50 years in business, operations in more than 30 countries and approximately 48,000 employees globally, Cardinal Health is essential to care. Information about Cardinal Health is available at cardinalhealth.com.

Contacts
Media: Erich Timmerman, erich.timmerman@cardinalhealth.com and 614.757.8231
Investors: Matt Sims, Matt.Sims@cardinalhealth.com and 614.553.3661

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SOURCE Cardinal Health

FAQ

What is the new quarterly dividend amount for Cardinal Health (CAH)?

Cardinal Health has increased its quarterly dividend to $0.5056 per share.

When will the new dividend be payable to shareholders of Cardinal Health (CAH)?

The dividend will be payable on July 15, 2024, to shareholders of record as of July 1, 2024.