5 Best Dividend Growth Stocks to Buy and Hold for 3 Years

1. The Cigna Group (NYSE:CI)

5-Dividend Growth Rate: 42.40%

On May 22, UBS raised its price recommendation on The Cigna Group (NYSE:CI) to $400 from $375. It reiterated a Buy rating on the shares. The analyst said managed care organizations broadly increased guidance after stronger-than-expected Q1 results. Favorable respiratory trends and seasonal cost patterns helped support performance during the quarter. The analyst also noted that improved Medicare Advantage rates, steadier ACA exchange enrollment, and modest Medicaid outperformance strengthened confidence in margin recovery. At the same time, the sector continues to deal with cost pressures tied to specialty drugs, GLP-1 treatments, and behavioral health expenses, according to the research note.

On May 20, Morgan Stanley raised its price goal on CI to $361 from $355. It kept an Overweight rating on the stock. The firm made the change after meetings with management that, in its view, “reinforced the underappreciated” specialty opportunity. The analyst added that the company’s September investor day is expected to highlight its growing long-term focus on Specialty businesses.

The Cigna Group (NYSE:CI) operates as a global health company with two business segments: Evernorth Health Services and Cigna Healthcare.

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