12 Most Reliable Dividend Stocks To Buy According to Hedge Funds

2. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 112

UnitedHealth Group Incorporated (NYSE:UNH) is an American multinational health insurance company. It reported strong earnings in the third quarter of 2024, with revenue of $100.8 billion, marking a 9.16% increase from the same period last year. Its domestic commercial offerings have experienced notable growth, adding 2.4 million new consumers this year. The projected net earnings for the full year 2024 are estimated at $15.50 to $15.75 per share, factoring in the sale of its South American operations earlier in the year and the effects of the Change Healthcare cyberattack.

PGIM Jennison Health Sciences Fund mentioned UNH in its Q3 2024 investor letter. Here is what the firm has to say:

“UnitedHealth Group Incorporated (NYSE:UNH) is the largest health care services company in the U.S. The company offers healthcare benefits to Americans who receive insurance from employers or government-based programs such as Medicare and Medicaid. Half of the company is represented from non-benefits businesses under the Optum umbrella. This includes a technology business that helps hospitals, pharma companies, and other payors. It also includes a fast-growing provider business where Optum owns surgery centers and urgent care centers. The company’s primary care business continues to grow and it’s participating in the emerging trend of primary care taking on risk and acting like an insurance company. Finally, UnitedHealth owns a drug benefits manager. The company continues to have high quality and well-positioned businesses. In the first half of ’24, UnitedHealth has beat earnings expectations and confirmed full year financial guidance. While medical costs have pressured results, the company has cut a lot of spending to support earnings. We have also seen volatility in the stock related to political dynamics; a view that Republicans are better for this group helped support the stock in June and July and a moderation in policy views from the democratic nominee also helped support the stock. Future catalysts for the company and the stock include potentially stabilizing cost trend, a calmer political environment, and visibility into the company’s long-term earnings growth targets.”

UnitedHealth Group Incorporated (NYSE:UNH) holds a strong dividend history. The company started paying annual dividends in 1990 and then shifted to quarterly payouts in 2010. Since then, it has raised its payouts every year, which makes UNH one of the best dividend stocks on our list. The company offers a quarterly dividend of $2.10 per share and has a dividend yield of 1.61%, as of January 12.

UnitedHealth Group Incorporated (NYSE:UNH) was included in 112 hedge fund portfolios at the end of Q3 2024, compared with 114 in the previous quarter, according to Insider Monkey’s database. The stakes owned by these funds are worth over $15 billion. With over 3.7 million shares, GQG Partners was the company’s leading stakeholder in Q3.