10 Best Dividend Paying Stocks To Buy According to Quant Hedge Fund AQR

7. Cardinal Health, Inc. (NYSE:CAH)

AQR Capital’s Stake Value: $340,465,462

Dividend Yield as of August 22: 1.84%

Cardinal Health, Inc. (NYSE:CAH) is an American multinational healthcare services company that specializes in the distribution of pharma products and related devices. The company stands to gain from its consistent focus on innovation and technology. Over the past five years, the stock has risen by more than 156%, significantly outpacing the broader market’s 95% gain. Analysts are optimistic about the healthcare sector’s prospects this year, citing ongoing changes fueled by advancements in AI and shifting patient needs. Since the start of 2024, the stock has surged by nearly 7%.

Cardinal Health, Inc. (NYSE:CAH) recently announced its fiscal Q4 2024 earnings, which showed strong operational execution, coupled with significant strategic advancements in the portfolio. The company generated solid cash flow, achieved continued profit growth in the Pharmaceutical and Specialty Solutions segment, and saw notable improvements from the GMPD Improvement Plan. In FY24, the company’s operating cash flow of $3.8 billion and free cash flow of $3.9 billion reached their all-time high. As the new fiscal year begins, the company carries forward momentum and confidence, as reflected in the raised guidance for fiscal year 2025.

Cardinal Health, Inc. (NYSE:CAH), one of the best dividend-paying stocks, currently offers a quarterly dividend of $0.5056 per share. The stock has a dividend yield of 1.84%, as of August 22. In May this year, the company raised its dividend for the 38th consecutive year.

At the end of Q2 2024, AQR Capital held over 3.4 million shares in Cardinal Health, Inc. (NYSE:CAH), worth over $340.4 million. The hedge fund trimmed its position in the company by 4%, with the company now accounting for 0.52% of the firm’s 13F portfolio.

Cardinal Health, Inc. (NYSE:CAH) was a part of 39 hedge fund portfolios at the end of Q2 2024, down from 45 in the previous quarter, as per Insider Monkey’s database. The stakes held by these hedge funds have a collective value of over $1.46 billion. Elliott Management was one of the company’s leading stakeholders in the company in Q2.