UnitedHealth Group Integrated ((NYSE:UN)H) stock is about to commerce ex-dividend in three days. You should purchase shares earlier than the 4th of December with a purpose to obtain the dividend, which the corporate pays on the 15th of December.
UnitedHealth Group’s subsequent dividend cost shall be US$1.25 per share, on the again of final 12 months when the corporate paid a complete of US$5.00 to shareholders. Wanting on the final 12 months of distributions, UnitedHealth Group has a trailing yield of roughly 1.5% on its present stock price of $337.94. Dividends are a significant contributor to funding returns for long run holders, however provided that the dividend continues to be paid. In consequence, readers ought to at all times verify whether or not UnitedHealth Group has been capable of develop its dividends, or if the dividend is perhaps lower.
Take a look at our newest evaluation for UnitedHealth Group
If an organization pays out extra in dividends than it earned, then the dividend may grow to be unsustainable – hardly a perfect scenario. That is why it is good to see UnitedHealth Group paying out a modest 26% of its earnings. A helpful secondary verify could be to judge whether or not UnitedHealth Group generated sufficient free cash circulate to afford its dividend. The excellent news is it paid out simply 22% of its free cash circulate within the final 12 months.
It is optimistic to see that UnitedHealth Group’s dividend is roofed by each income and cash circulate, since that is usually an indication that the dividend is sustainable, and a decrease payout ratio often suggests a larger margin of security earlier than the dividend will get lower.
Click on right here to see the corporate’s payout ratio, plus analyst estimates of its future dividends.
Have Earnings And Dividends Been Rising?
Corporations with constantly rising earnings per share usually make the perfect dividend stocks, as they often discover it simpler to develop dividends per share. If enterprise enters a downturn and the dividend is lower, the corporate may see its value fall precipitously. That is why it is comforting to see UnitedHealth Group’s earnings have been skyrocketing, up 25% each year for the previous 5 years. Earnings per share have been rising in a short time, and the corporate is paying out a comparatively low proportion of its revenue and cash circulate. Corporations with rising earnings and low payout ratios are sometimes the perfect long-term dividend stocks, as the corporate can each develop its earnings and improve the share of earnings that it pays out, basically multiplying the dividend.
Many buyers will assess an organization’s dividend efficiency by evaluating how a lot the dividend funds have modified over time. UnitedHealth Group has delivered 67% dividend development per 12 months on common over the previous 10 years. Each per-share earnings and dividends have each been rising quickly in current instances, which is nice to see.
To Sum It Up
Has UnitedHealth Group received what it takes to keep up its dividend funds? UnitedHealth Group has been rising earnings at a fast charge, and has a conservatively low payout ratio, implying that it’s reinvesting closely in its enterprise; a sterling mixture. UnitedHealth Group appears strong on this evaluation total, and we might positively think about investigating it extra carefully.
In gentle of that, whereas UnitedHealth Group has an interesting dividend, it is worth realizing the dangers concerned with this stock. For instance, we have discovered 2 warning indicators for UnitedHealth Group that we advocate you think about earlier than investing within the enterprise.
When you’re available in the market for dividend stocks, we advocate checking our checklist of prime dividend stocks with a larger than 2% yield and an upcoming dividend.
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