"Dividend investing stands out as a reliable path to building wealth because it turns company profits into a steady cash stream for shareholders. Unlike chasing high-growth stocks that can swing wildly with market moods, dividends provide predictable income that compounds over time through reinvestment. This strategy suits long-term investors by reducing volatility - regular payouts act as a buffer during downturns,"
"Cardinal Health ( ) ranks as a dividend star due to its essential role in the U.S. healthcare supply chain, distributing pharmaceuticals and medical products to hospitals and pharmacies nationwide. This positioning generates consistent revenue, even in economic slowdowns, as demand for drugs and supplies remains inelastic. The company pays a quarterly dividend of $0.51 per share, yielding about 1.3% annually based on recent prices."
Dividend investing converts company profits into steady cash payouts that compound through reinvestment, offering predictable income compared with high-growth stocks. Regular dividend distributions reduce portfolio volatility and provide buying opportunities during market downturns. Dividends suit long-term investors, retirees, and those seeking financial independence by generating passive income without selling shares. Historically, dividend-paying companies have delivered capital appreciation and yields that outpace inflation. Cardinal Health exemplifies a reliable dividend payer with a quarterly $0.51 dividend, roughly 1.3% yield, a free cash flow payout ratio near 15%, and a 30-year streak of dividend increases.
Read at 24/7 Wall St.
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