5 Best Healthcare Dividend Stocks To Buy Now

4. Cigna Corporation (NYSE:CI)

Number of Hedge Fund Holders: 66

Dividend Yield as of October 28: 1.38%

Cigna Corporation (NYSE:CI) is a Connecticut-based provider of healthcare insurance and benefits management. The company’s Cigna Healthcare segment offers medical, pharmacy, behavioral health, dental, vision, and health advocacy programs. On October 26, Cigna Corporation (NYSE:CI) declared a $1.12 per share quarterly dividend, in line with previous. The dividend is payable on December 21, to shareholders of record on December 6. 

On August 8, UBS analyst Kevin Caliendo raised the price target on Cigna Corporation (NYSE:CI) to $330 from $310 and kept a Buy rating on the shares. The stock has outperformed its peers since announcing Q2 earnings given its solid results and lower medical loss ratio forecast for 2022, the analyst told investors. If COVID-19 and flu remain negligible in the second half of the year, the analyst sees “upside to 2022 estimates”.

According to Insider Monkey’s data, 66 hedge funds were bullish on Cigna Corporation (NYSE:CI) at the end of the second quarter of 2022, up from 63 funds in the prior quarter. Larry Robbins’ Glenview Capital is the largest stakeholder of the company, with more than 2 million shares worth $547 million. 

Here is what Aristotle Capital specifically said about Cigna Corporation (NYSE:CI) in its Q2 2022 investor letter:

“Cigna Corporation (NYSE:CI) contributed to performance in the second quarter, outpacing the benchmark Health Care sector return. We believe Cigna benefited from investors seeking relative “safety” in the managed care sector and the stock’s attractive valuation at just over 10 times next year’s earnings. During the quarter, Cigna reported an earnings beat due to a better-than-expected medical loss ratio.”