UnitedHealth Group Inc. (UNH), WellPoint, Inc. (WLP), Medtronic, Inc. (MDT): These Healthcare Stocks Pay Fast-Growing Dividends

Page 1 of 2

Given the huge potential of the healthcare industry, it is very tempting to peer through it for possible options if one seeks for the best places to earn dividend income. These stocks pay some of the fastest-growing dividends. I say, it is the best time to take advantage of the immense possibilities in this sector.

Health insurance leader

UnitedHealth Group Inc

With 13.6% of the market share in health insurance, UnitedHealth Group Inc. (NYSE:UNH) is the largest of all healthcare providers in the U.S. The bulk of the company’s business is its Medicare, a flourishing industry in a nation where quality healthcare and longer life are expected by its citizens. UnitedHealth Group Inc. (NYSE:UNH) takes its dividend paying ability from its $80 billion annual revenues. This stock has doubled its dividend payout within the past two years. The rally in its payout started in 2010 when the company decided to pay quarterly dividends instead of just annual. During this time, the dividend swelled by 1,250%. In 2011, the annualized dividend continued to grow by 51%, and in 2012, by 30.6%. In 2012, the company’s payout ratio based on cash flow is at a healthy level of 11.45%.

Source: Nasdaq.com

UnitedHealth Group Inc. (NYSE:UNH)’s core operations continue to improve; its net operating cash flow has been stably rising, albeit, on a slower rate in 2012. In the first quarter of 2013, its revenue grew by 11.21% year-on-year, way faster than that for the same period in the past year. Likewise, it sits on a huge pile of cash; its free cash flow keeps on growing. Given this stable and improving financial position, the health insurance leader is expected to have the ability to sustain growth in its payout. One should also note its low P/E ratio (ttm) of 12.20, which is lower than the industry’s 13.80. It has a forward ratio of 10.79, and PEG ratio of only 1.11. This lower pricing level is attractive for one with a double-digit revenue growth on a quarterly basis and with EPS that is expected to grow on a double-digit in the next 5 years.

Source: Marketwatch.com

WellPoint, Inc. (NYSE:WLP)’s High Potential Value

A company that comes next to UnitedHealth Group Inc. (NYSE:UNH) in terms of market share is WellPoint, Inc. (NYSE:WLP). It has an 8.34% share in the market and rakes in over $56 billion in annual revenue. WellPoint, Inc. (NYSE:WLP) has 54 million policyholders. In terms of dividends, it just increased its quarterly payout by 30%, from only $0.2875 to $0.375 per share. The annualized payment went up by 15% in 2012. The company’s pile of cash has remained positive although it declined by about 27% in 2012. During this time, its net operating cash flow went down by about 19%.

The growth has been better lately nonetheless. Its quarterly revenue for the first quarter of 2013 grew by 14.7% year-on-year. This is a remarkable improvement from its 3.5% growth during the same period last year. In fact, the quarterly revenue growth in the end of all 4 quarters last year compiled by Ycharts.com did not even reach 4%. But the company has picked up since then. Likewise, its profit margin remains stable with respect to its performance in recent years. The payout ratio is also at a decent level of 13.4%. WellPoint, Inc. (NYSE:WLP) currently has a low valuation; its P/E ratio is at 8.94 in contrast to the industry’s 13.80, and its PEG is only 0.78. Thus, the room for appreciation in share price is undeniable. The company has also recently received bullish sentiment from investors given its strong buyback activity.

Source: Nasdaq.com

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!