UnitedHealth Group’s (UNH) Healthcare Dominance: A Key Player in the Dogs of the Dow

UnitedHealth Group Incorporated (NYSE:UNH) is included among the 11 Dogs of the Dow Dividend Stocks to Buy Now.

UnitedHealth Group’s (UNH) Healthcare Dominance: A Key Player in the Dogs of the Dow

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

The stock has dropped over 44% so far this year after reporting weaker-than-expected earnings in the first quarter. The company first reduced its full-year outlook and later chose to withdraw it entirely.

Even with the underwhelming Q1 performance, UnitedHealth Group Incorporated (NYSE:UNH) still posted a 9.8% year-over-year increase in revenue, reaching $109.6 billion. It earned a profit of around $6.3 billion during the quarter and maintained a solid financial position, holding close to $34.3 billion in cash and cash equivalents, along with a debt level that remains manageable. The company has added 780,000 new members so far this year. Meanwhile, Optum Health still expects to provide value-based care to an additional 650,000 patients in 2025.

In addition, UnitedHealth Group Incorporated (NYSE:UNH) generated $5.5 billion in operating cash flow during the quarter and returned $5 billion to investors through dividends and share repurchases. The company has been rewarding shareholders with growing dividends since 2011 and currently offers a quarterly dividend of $2.21 per share. The stock supports a dividend yield of 3.15%, as of July 26.

While we acknowledge the potential of UNH to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UNH and that has 100x upside potential, check out our report about this cheapest AI stock.

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