15 Best Next Generation Dividend Aristocrats to Buy

2. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 139

UnitedHealth Group Incorporated (NYSE:UNH) is currently facing some challenges in terms of stock price. The stock has fallen sharply, down 39% since the beginning of 2025 and over 37% in the past 12 months. That’s a steep drop for such a major company. However, despite the decline, its market value remains strong, keeping it among the world’s largest healthcare firms.

As a result of the lower share price, UnitedHealth Group Incorporated (NYSE:UNH)’s dividend yield has risen to 2.87%.

A falling stock price can increase a stock’s dividend yield, but that doesn’t necessarily mean the dividend is in danger. To judge dividend safety, it’s important to look at a company’s financials, especially the payout ratio and free cash flow.

UnitedHealth Group Incorporated (NYSE:UNH)’s payout ratio stands at a manageable 35%, suggesting it retains enough earnings to reinvest in the business or cushion against downturns. The company also generated $24.9 billion in free cash flow over the past 12 months, while paying just $7.7 billion in dividends. This indicates its dividend remains well-supported as long as business performance stays stable.

In addition, UnitedHealth Group Incorporated (NYSE:UNH) has raised its payouts consistently every year since 2011. This makes UNH one of the best next generation dividend aristocrat stocks.