Top Dividend Stocks to Buy in 2024 According to Billionaire Paul Tudor Jones

2. Cardinal Health Inc (NYSE:CAH)

Billionaire Paul Tudor Jones Q1’2024 Stake: $59,463,101

Cardinal Health Inc (NYSE:CAH) has increased its dividends for 37 consecutive years. Billionaire Tudor Jones upped his hold in the company by 165% in the first quarter, ending the period with a $59 million stake in Cardinal Health Inc (NYSE:CAH). Last month Cardinal Health Inc (NYSE:CAH) posted fiscal Q3 results. Adjusted EPS in the quarter came in at $2.08, beating estimates by $0.13. Revenue in the period jumped 8.7% year over year to $54.9 billion, missing estimates by $1.21 billion. Overall, analysts have given a positive outlook for the healthcare sector this year, attributing this to ongoing transformations driven by advancements in AI and evolving patient requirements. In its most recent quarter, the company achieved widespread growth, showing significant profit increases in both its Pharmaceutical and Specialty Solutions segments, building on an already strong performance from the previous year. CAH ranks second on our list of the best dividend stocks to buy according to Paul Tudor Jones.

Cardinal Health management talked about guidance during the latest earnings call in May:

 “With another solid quarter from Pharmaceutical and Specialty Solutions, we are raising and narrowing our segment profit guidance for the full year to 8.5% to 9.5% growth, which at the midpoint implies continued mid-single digit profit growth in the fourth quarter. We are reiterating our guide for GMPD segment profit of approximately $65 million for fiscal year ’24. We continue to expect to address the impact of inflation as we exit fiscal ’24, along with continued Cardinal Health brand volume growth and benefits from our continued cost savings initiatives. Additionally, we anticipate a positive impact from seasonality in Q4 compared to Q3. We are also reiterating our segment profit guide for the Other businesses, 6% to 8% segment profit growth for the full year, given that we expect a strong Q4 for those businesses.”

Cardinal Health’s forward P/E 13.07, much lower than the industry median of 19.57. Over the next five years the company’s earnings are expected to rise by 11.03% on a per-annum basis.