Is UNH’s Dividend at Risk Due to Its Falling Stock Price?

UnitedHealth Group Incorporated (NYSE:UNH) is one of the best next generation dividend aristocrat stocks.

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.

A senior healthcare professional giving advice to a patient in a clinic.

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.

While we acknowledge the potential of UNH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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