Recent Buy: Cardinal Health

Today I  purchased my first individual dividend growth stock. I bought 21 shares of Cardinal Health Alliance (CAH) for $49.99. Hopefully, this will generate a passive income stream of $30.24 in post tax forward yearly income.

According to Wikipedia, Cardinal Health is an american healthcare company, and the 14th highest revenue generating company in the United States.  The company specializes in the distribution of pharmaceuticals and medical products, serving more than 100,000 locations. The company also manufactures medical and surgical products, including gloves, surgical apparel, and fluid management products. In addition, it operates the largest network of radiopharmacies in the U.S. Cardinal Health provides medical products to over 75 percent of hospitals in the United States.

I like the yield (3.84%) which is below the 5 years average yield, the low payout ratio (36.2%) and the P/E which is lower than the market and the company’s normal PE. The Company provides essential services. They have a great moat in that they can operate in very low margins.

Till next time.

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