- CAH dividends remain secure despite a historically low forward yield of 0.74 percent
- Shares surged more than 60 percent in 2025, lifting valuation and reducing yield
- Short interest dropped 22.2 percent, signaling improving sentiment heading into 2026
Ex Dividend on January 2
Cardinal Health will trade ex dividend on 2 January 2026, offering its standard quarterly payout of 0.511 dollars per share.
Shares are expected to adjust modestly, with a likely slip of about 0.25 percent, as referenced in the data on 0.25%.
Investors must own CAH shares before the ex date to receive the 15 January 2026 distribution.
With the stock trading near 208 dollars, the forward CAH dividend yield stands at roughly 0.74 percent, far below its five year average of about 2.49 percent.
The lower yield reflects strong share price appreciation rather than any reduction in payout.
A Standout Among Dividend Aristocrats
Cardinal Health has been one of the strongest performers in its peer group this year.
While Dividend Aristocrats overall gained only 7.2 percent in 2025, CAH delivered standout returns above 60 percent, as noted in the mention of outsized gains above 60%.
For a company known for defensive earnings and steady CAH dividends, this level of appreciation is unusual.
The surge reflects shifting investor expectations around Cardinal Health’s long term fundamentals and growth potential.
However, strong price performance has also reduced the yield and pushed the stock to a P E ratio near 31, above historical averages.
This valuation level may give some long term income investors pause as they assess future yield on cost.
Sentiment Strengthens as Short Interest Falls
Market sentiment improved heading into 2026, supported by a 22.2 percent decline in short interest, as indicated by the reading of 22.2%.
Falling short interest often signals reduced downside expectations or growing confidence in earnings stability.
For dividend focused investors, this trend helps reduce perceived risk surrounding CAH dividends.
Cardinal’s position as a major U.S. pharmaceutical distributor continues to support its fundamentals.
Operating cash flow per share remains above 21 dollars, easily covering its annualized 1.533 dollar dividend.
Dividend Growth Profile
For investors seeking income growth, Cardinal Health presents a mixed picture.
The one year dividend growth rate rose noticeably, yet the three and five year growth rates remain near 1 percent, trailing inflation.
The latest payout shows no increase, suggesting the streak of annual raises is currently paused.
Despite this, the company maintains a solid long term record, with a 10 year dividend CAGR near 7 percent.
The strong share price gains in 2025 may provide management greater flexibility to resume regular increases once earnings stabilize.
Positioning for Dividend Investors
For new buyers, the main trade off is clear.
CAH dividends appear secure and sentiment is improving, but the yield is historically low and valuation elevated.
The upcoming ex dividend date may interest investors seeking near term income.
However, long horizon dividend investors may question whether current pricing supports attractive yield on cost potential.
Existing shareholders may find the stock worth holding as momentum, cash flow strength and sector resilience continue to favor Cardinal Health.
