20 Best Performing Dividend Stocks in 2025

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

YTD Return as of December 30: 76.6%

Dividend Yield as of December 30: 0.99%

Cardinal Health, Inc. (NYSE:CAH) is among the best-performing dividend stocks in 2025.

Cardinal Health, Inc. (NYSE:CAH)’s market-beating performance reflects a business that has changed direction and executed well. By shifting more of its focus toward higher-margin areas such as specialty pharmaceuticals and managed services, earnings growth has picked up in a meaningful way. Sell-side forecasts suggest that momentum should continue, with estimated earnings growth of 19.3% in FY 2026 and 12.6% in FY 2027.

That earnings lift has also changed the dividend picture. The payout ratio now sits at a modest 30.6%, leaving room for flexibility. While nothing is guaranteed, the company has the option to return a larger share of profits to shareholders if it chooses. Drug distributors more broadly have benefited from rising sales of specialty medicines. These treatments target complex conditions like rheumatoid arthritis and cancer and tend to carry higher margins. At the same time, distributors have seen support from biosimilars, lower-cost versions of complex biotech drugs, even as traditional generic drug prices face pressure from intense competition.

Cardinal Health, Inc. (NYSE:CAH) recently raised its outlook for fiscal 2026. It now expects adjusted earnings per share between $9.65 and $9.85, up from a prior range of $9.30 to $9.50. Management said the 35-cent increase reflects a strong first-quarter performance. The forecast also assumes contributions from the pending acquisition of Solaris Health, which is expected to close in early November.

Cardinal Health, Inc. (NYSE:CAH) operates as a global healthcare company, distributing pharmaceuticals and medical products, manufacturing medical supplies, and providing a range of healthcare services.