Why Cardinal Health’s (CAH) Diversified Operations Make it a Must-Buy Dividend Stock for Long-Term Investors

Core Insights - Cardinal Health, Inc. (NYSE:CAH) is recognized as a must-buy dividend stock due to its diversified operations and strong financial position [2][4]. Group 1: Company Overview - Cardinal Health is a major distributor of branded and generic drugs, specialty medicines, over-the-counter healthcare products, and consumer goods, serving a wide range of customers including hospitals, pharmacies, and medical offices [2]. - The company also produces and markets its own line of medical and surgical supplies, including gloves and surgical wear, and operates a large network of radiopharmacies [3]. Group 2: Financial Performance - In FY25, Cardinal Health generated an adjusted free cash flow of $2.5 billion, with expectations for FY26 to be between $2.75 billion and $3.25 billion [4]. - The company has increased its dividend payouts for 39 consecutive years, currently offering a quarterly dividend of $0.5107 per share and a dividend yield of 1.30% as of October 9 [4].