In this article, we discuss 5 dividend stocks in Robert Pitts’ portfolio. If you want to read our detailed analysis of Steadfast Capital’s investment strategy and its past performance, go directly to read Robert Pitts’ Steadfast Capital’s Portfolio: 10 Dividend Stock Picks.
5. UnitedHealth Group Incorporated (NYSE:UNH)
Steadfast Capital’s Stake Value: $199,976,000
Dividend Yield as of June 16: 1.45%
Number of Hedge Fund Holders: 103
UnitedHealth Group Incorporated (NYSE:UNH) provides healthcare coverage and benefits to its consumers and also specializes in software and data consultancy services. The company is also expanding its telehealth services to cut costs and meet the needs of its patients.
In Q1 2022, UnitedHealth Group Incorporated (NYSE:UNH) reported revenue of $80.1 billion, up 14% from the same period last year. The company’s EPS of $5.49 surpassed Street estimates by $0.14. Moreover, due to the Covid pandemic, the company’s medical care ratio jumped to 82%, from 80.9% last year.
On June 8, UnitedHealth Group Incorporated (NYSE:UNH) hiked its quarterly dividend by 14% for the 12th consecutive year. The company currently offers a quarterly payout of $1.65 per share, with a dividend yield of 1.45%, as of the market close of June 16. In June, Loop Capital mentioned UnitedHealth Group Incorporated (NYSE:UNH) in its investors’ note, stating the company’s leading positions in commercial and government benefit markets. The firm initiated its coverage of the stock with a Buy rating and a $575 price target.
At the end of March 2022, 103 hedge funds in Insider Monkey’s database reported owning roughly $13 billion worth of stakes in UnitedHealth Group Incorporated (NYSE:UNH). In comparison, 96 funds held stakes in the company in the previous quarter, valued at $13.6 billion. Among these hedge funds, Eagle Capital Management owned roughly 3 million UNH shares, worth $1.48 billion, becoming the company’s largest stakeholder in Q1.
At the end of Q1 2022, Steadfast Capital owned 392,133 UNH shares, valued at roughly $200 million. The hedge fund sold shares worth $65,700 during the quarter, slashing its position in the company by 26%. The insurance company accounted for 3.43% of Robert Pitts’ portfolio.
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 is a leading diversified health and well- being company whose divisions include insurance arm United Healthcare and Optum, which offers care delivery and other services. Shares increased on a fourth quarter beat and a reaffirmation of what is likely conservative guidance for 2022. 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.”