Dividend.com: Cardinal Healthy

Cardinal Health Revenue Beats Estimates

Cardinal Health ( CAH) reported that revenue for its first quarter rose 11% to $24.35 billion from $21.97 billion.

The company had balanced sales all around, as its health care supply chain business rose 11% to $23.4 billion, while revenue in the medical products and technologies unit gained 12% to $1.2 billion.

As for the company's next quarter, management did say it is seeing hospitals delay some purchase decisions that will have some impact to our clinical and medical products segment for the December estimates.

We have avoided shares of CAH since our early June coverage began, when shares were trading at $55.98. The company has a dividend yield of 1.26%, based on last night's closing stock price of $38.22, and is currently trading at 10 times the low end of 2009 EPS estimates. We think the shares have a key level of support at the $30 area, and we will watch the name closely if there is any potential test of that long-term area. For now, we would look elsewhere for better dividend-paying opportunities.

Cardinal Health is not recommended at this time, holding a Dividend.com Rating of 3.0 out of 5 stars.

Comcast Reports Earnings Jump 38%; It May Halt Buyback Plan

Comcast ( CAH) reported a 38% increase in third-quarter earnings on a drop in capital spending and better cable pricing.

The company expects to exceed its free cash flow growth forecast of at least 20% in fiscal 2008. It reported operating cash flow of $3.24 billion, up 10%, while free cash flow rose by 77% to $928 million. Capital spending fell 14% to $1.3 billion.

The company was able to add 382,000 new Internet subscribers in the quarter, but that was down 19% from a year ago. Comcast ended the quarter with 14.7 million broadband customers.

The company said it may not complete its share buybacks for the fourth quarter and for next year as originally planned.

We have avoided shares of CMCSA since our early June coverage began, when the stock was trading at $21.94. The company has a low dividend yield of 1.47%, based on last night's closing stock price of $16.96. We think the stock would be attractive if the company raised its dividend to a more respectable level. For now, we don't see much excitement in owning the shares, as the company is trading at nearly 19 times the low end of 2009 EPS estimates.

Comcast is not recommended at this time, holding a Dividend.com Rating of 3.2 out of 5 stars.

BorgWarner Reports Loss, Weak Outlook for 2009

BorgWarner ( BWA) reported a loss of $130.4 million -- or $1.12 per share -- in its third quarter. That compares with profit of $83.2 million -- or 70 cents per share -- in the same quarter a year ago.

Despite the auto industry slump, the company has been one of the better-performing auto suppliers because of increased demand for its fuel-efficiency boosting technology. Management expects the current unprecedented economic environment to continue to affect its near-term results and create difficult conditions through 2009.

The company lowered its profit outlook for the full year to a range of $2.25 to $2.35 per share, down from a previous forecast of $2.80 to $2.95 per share. Analysts expect profit of $2.71 per share in 2008.

We have avoided shares of BWA since our early June coverage began, when the stock was trading at $48.37. The company has a 1.84% dividend yield based on last night's closing stock price of $23.89. We have avoided and will continue to avoid the auto-related sectors. The industry still has not shown any signs of bottoming.

BorgWarner is not recommended at this time, holding a Dividend.com Rating of 2.9 out of 5 stars.

Newmont Mining Results Hurt by Copper Weakness

Newmont Mining ( NEM) reported that its third-quarter net income dropped by 51% due to higher production costs and plummeting copper sales.

Management believes the global economic slowdown has created more volatility in short-term prices for commodities such as gold and copper, which will continue to affect operations.

The company's copper sales dropped nearly 84% to $90 million, as prices fell and the company experienced problems at a mine in Indonesia. The company sold 1.28 million ounces of gold in the third quarter at an average realized price of $865 an ounce, with applicable costs at $480 per ounce.

We have avoided shares of NEM since our early June coverage began, when shares were trading at $48.32. The company, despite a recent drop in share price, still has a low dividend yield of 1.51%, based on last night's closing stock price of $26.47. The stock has frustrated investors with its underperformance, despite Gold peaking over $1,000 an ounce earlier this year. We would want to see NEM shares begin to perform a whole lot better than they have before considering any ratings changes to the upside.

Newmont Mining is not recommended at this time, holding a Dividend.com Rating of 3.0 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks as well as a detailed explanation of our ratings system.

At the time of publication, the author had no positions in stocks mentioned, although positions may change at any time.

Tom Reese and Paul Rubillo are senior editors of Dividend.com. Visit Dividend.com for more dividend stock ratings, picks, news, and analysis for long-term and income-seeking investors.

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