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UnitedHealth Group (UNH) Hikes Quarterly Dividend by 14%
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UnitedHealth Group Incorporated’s (UNH - Free Report) board of directors sanctioned a 14% hike in the quarterly cash dividend to boost shareholder value. The latest hike takes the current payout to $1.88 per share from the prior payout of $1.65.
The increased dividend, marking the 14th consecutive year of a dividend hike, will be paid on Jun 27, 2023, to shareholders of record as on Jun 19. Based on the stock’s Jun 7 closing price of $482.13, the new dividend will yield 1.4% to the company.
Prior to the recent dividend hike, UnitedHealth Group had approved an increase of around 14% in its quarterly dividend in 2022 as well. UNH boasts of an uninterrupted dividend payment history and even COVID induced volatilities could not throw a roadblock in its solid history of paying dividends, which is commendable.
In 1990, UnitedHealth Group started rewarding shareholders through a fixed annual dividend of 3 cents per share. However, it transitioned to a quarterly dividend payout in 2010 and since then, has been continuously hiking dividends every year.
Apart from implementing dividend hikes, UNH has a well-established history of engaging in share buybacks in a bid to offer more returns to shareholders. The health insurer continues to pursue share buybacks as part of the repurchase program renewed by the Board of Directors in Jun 2018. The program allows for the repurchase of up to 100 million shares of UNH’s common shares, out of which 27 million shares are left to be bought back as of Mar 31, 2023.
A strong financial position provides ample support to a company in sustaining a solid capital deployment record. UnitedHealth Group boasts of growing cash reserves and robust cash-generating abilities. As of Mar 31, 2023, its cash and cash equivalents surged 79.4% from the 2022-end level. UNH generated operating cash flows of $16.3 billion in the first quarter of 2023, which increased more than three -fold year over year.
Also, return on equity — a profitability measure of how prudently the company is utilizing its shareholders’ funds — is 27.1%, higher than the industry’s average of 24.8%.
Shares of UnitedHealth Group have gained 3.7% in the past three months compared with the industry’s 5.5% growth. UNH currently carries a Zacks Rank #3 (Hold).
Penumbra’s earnings surpassed estimates in each of the last four quarters, the average surprise being 109.42%. The Zacks Consensus Estimate for PEN’s 2023 earnings is pegged at $1.56 per share, which indicates a nearly 10-fold increase from the prior-year figure. The same for revenues suggests an improvement of 24.1% from the year-ago tally. The consensus mark for PEN’s 2023 earnings has moved 0.6% north in the past 30 days.
The bottom line of Merit Medical Systems outpaced estimates in each of the trailing four quarters, the average surprise being 20.22%. The Zacks Consensus Estimate for MMSI’s 2023 earnings indicates a 7% rise, while the same for revenues suggests an improvement of 6.2% from the respective prior-year tallies. The consensus mark for MMSI’s 2023 earnings has moved 1.4% north in the past 60 days.
Ensign Group’s earnings outpaced estimates in one of the trailing four quarters, missed the mark once and matched the same in the remaining two occasions, the average surprise being 0.45%. The Zacks Consensus Estimate for ENSG’s 2023 earnings indicates a 13.5% improvement, while the same for revenues suggests an improvement of 22.2% from the respective prior-year tallies. The consensus mark for ENSG’s 2023 earnings has moved up 0.2% in the past 30 days.
Shares of Penumbra, Merit Medical Systems and Ensign Group have gained 25.3%, 26.6% and 3.8%, respectively, in the past three months.
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UnitedHealth Group (UNH) Hikes Quarterly Dividend by 14%
UnitedHealth Group Incorporated’s (UNH - Free Report) board of directors sanctioned a 14% hike in the quarterly cash dividend to boost shareholder value. The latest hike takes the current payout to $1.88 per share from the prior payout of $1.65.
The increased dividend, marking the 14th consecutive year of a dividend hike, will be paid on Jun 27, 2023, to shareholders of record as on Jun 19. Based on the stock’s Jun 7 closing price of $482.13, the new dividend will yield 1.4% to the company.
Prior to the recent dividend hike, UnitedHealth Group had approved an increase of around 14% in its quarterly dividend in 2022 as well. UNH boasts of an uninterrupted dividend payment history and even COVID induced volatilities could not throw a roadblock in its solid history of paying dividends, which is commendable.
In 1990, UnitedHealth Group started rewarding shareholders through a fixed annual dividend of 3 cents per share. However, it transitioned to a quarterly dividend payout in 2010 and since then, has been continuously hiking dividends every year.
Apart from implementing dividend hikes, UNH has a well-established history of engaging in share buybacks in a bid to offer more returns to shareholders. The health insurer continues to pursue share buybacks as part of the repurchase program renewed by the Board of Directors in Jun 2018. The program allows for the repurchase of up to 100 million shares of UNH’s common shares, out of which 27 million shares are left to be bought back as of Mar 31, 2023.
A strong financial position provides ample support to a company in sustaining a solid capital deployment record. UnitedHealth Group boasts of growing cash reserves and robust cash-generating abilities. As of Mar 31, 2023, its cash and cash equivalents surged 79.4% from the 2022-end level. UNH generated operating cash flows of $16.3 billion in the first quarter of 2023, which increased more than three -fold year over year.
Also, return on equity — a profitability measure of how prudently the company is utilizing its shareholders’ funds — is 27.1%, higher than the industry’s average of 24.8%.
Shares of UnitedHealth Group have gained 3.7% in the past three months compared with the industry’s 5.5% growth. UNH currently carries a Zacks Rank #3 (Hold).
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Stocks to Consider
Some better-ranked stocks in the Medical space are Penumbra, Inc. (PEN - Free Report) , Merit Medical Systems, Inc. (MMSI - Free Report) and The Ensign Group, Inc. (ENSG - Free Report) . Penumbra sports a Zacks Rank #1 (Strong Buy), and Merit Medical Systems and Ensign Group carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Penumbra’s earnings surpassed estimates in each of the last four quarters, the average surprise being 109.42%. The Zacks Consensus Estimate for PEN’s 2023 earnings is pegged at $1.56 per share, which indicates a nearly 10-fold increase from the prior-year figure. The same for revenues suggests an improvement of 24.1% from the year-ago tally. The consensus mark for PEN’s 2023 earnings has moved 0.6% north in the past 30 days.
The bottom line of Merit Medical Systems outpaced estimates in each of the trailing four quarters, the average surprise being 20.22%. The Zacks Consensus Estimate for MMSI’s 2023 earnings indicates a 7% rise, while the same for revenues suggests an improvement of 6.2% from the respective prior-year tallies. The consensus mark for MMSI’s 2023 earnings has moved 1.4% north in the past 60 days.
Ensign Group’s earnings outpaced estimates in one of the trailing four quarters, missed the mark once and matched the same in the remaining two occasions, the average surprise being 0.45%. The Zacks Consensus Estimate for ENSG’s 2023 earnings indicates a 13.5% improvement, while the same for revenues suggests an improvement of 22.2% from the respective prior-year tallies. The consensus mark for ENSG’s 2023 earnings has moved up 0.2% in the past 30 days.
Shares of Penumbra, Merit Medical Systems and Ensign Group have gained 25.3%, 26.6% and 3.8%, respectively, in the past three months.