Although UnitedHealth (NYSE: UNH) is navigating a turbulent year, the health insurer continues to reward investors with steady dividend payments.
For its latest payout, the company authorized a quarterly cash dividend of $2.21 per share, payable on September 23 to shareholders of record as of September 15.
For an individual holding 100 shares, this translates into $221 in income for the quarter. On an annualized basis, the dividend amounts to $8.84 per share, offering a yield of just over 3% at current prices.
Notably, UnitedHealth has raised its dividend for 16 consecutive years. According to the latest data, the payout ratio stands at 48.63%, meaning nearly half of earnings are directed toward dividends.
UnitedHealth stock troubles
While investors benefit from the dividend, UNH shares are still working to recover from recent losses. At the close of the last session, the stock was valued at $308.49, up 1.4% on the day, though down 38% year-to-date.
The stock recently received support after Berkshire Hathaway disclosed a $1.6 billion stake in August. Warren Buffett’s backing helped restore some confidence, though analysts remain cautious about near-term profitability given rising expenses and ongoing federal scrutiny of UnitedHealth’s Medicare Advantage billing practices.
For instance, Bank of America Securities on August 18 raised its price target on UnitedHealth to $325 from $290 while maintaining a ‘Neutral’ rating. The firm sees potential for earnings recovery by 2027 but warned of limited near-term visibility, with regulatory and cost pressures still looming.
Earlier in the year, investor sentiment had been weighed down by leadership changes, uncertainty around financial guidance amid rising costs, and Department of Justice investigations.
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The post UnitedHealth to pay dividends on September 23; Here’s how much 100 UNH shares will earn appeared first on Finbold.
Source: https://finbold.com/unitedhealth-to-pay-dividends-on-september-23-heres-how-much-100-unh-shares-will-earn/