5 Dividend Stocks to Buy According to Richard Hamm’s Bristol Gate Capital

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In this article, we discuss 5 dividend stocks to buy according to Richard Hamm’s Bristol Gate Capital. If you want to read our detailed analysis of the hedge fund’s past performance, go directly to read 9 Dividend Stocks to Buy According to Richard Hamm’s Bristol Gate Capital

5. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 103
Dividend Yield as of May 27: 1.15%
Bristol Gate Capital’s Stake Value: $118,097,000

An American multinational healthcare and insurance company, UnitedHealth Group Incorporated (NYSE:UNH) recently announced to expand its telehealth sector to manage cost control. In Q1 2022, the company generated revenue of $80.1 billion, which presented a 10% growth from the same period last year.

At the end of Q1 2022, UnitedHealth Group Incorporated (NYSE:UNH) was the largest holding of Bristol Gate Capital, as the hedge fund held shares worth over $118 million in the company. The hedge fund bought an additional 8,000 shares in the company during Q1, worth roughly $6 million. UnitedHealth Group Incorporated (NYSE:UNH) represented 5.78% of the fund’s 13F portfolio.

In February, UnitedHealth Group Incorporated (NYSE:UNH) announced a quarterly dividend of $1.45 per share, in line with its previous dividend. The company last raised its dividend in June 2021, marking an 11th consecutive year of dividend growth. As of May 27, the stock’s dividend yield stood at 1.15%. Highlighting the strong performance of the stock and growth in its earnings, in May, Bernstein set a $561 price target on UnitedHealth Group Incorporated (NYSE:UNH), with a Market Perform rating on the shares.

In addition to Bristol Gate, 103 hedge funds tracked by Insider Monkey reported owning stakes in UnitedHealth Group Incorporated (NYSE:UNH) in Q1 2022, up from 96 in the quarter earlier. The consolidated value of these stakes is roughly $13 billion. With a stake worth over $1.48 billion, Eagle Capital Management was the largest shareholder of the Minnesota-based company in Q1 2022.

Baron Funds mentioned UnitedHealth Group Incorporated (NYSE:UNH) in its Q1 2022 investor letter. Here is what the firm has to say:

UnitedHealth Group Incorporated (NYSE:UNH) is a leading diversified health and wellbeing company whose divisions include insurance arm, United Healthcare and healthcare services arm, Optum, which offers care delivery and other services. Shares increased 1.8% on good fourth quarter results with revenues up 12.5% year-over-year, operating margins of 7.5% and EPS up 78% while also reaffirming its 2022 guidance. We believe UnitedHealth leads the health care industry in innovation and execution as evidenced by its strong value proposition leading to Medicare Advantage share gains, strong cost controls, and its leadership position in the shift to value-based care.”

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