10 Best Dow Jones Dividend Stocks According to Wall Street Analysts

3. UnitedHealth Group Incorporated (NYSE:UNH)

Upside Potential as of February 6: 20.9%

UnitedHealth Group Incorporated (NYSE:UNH) is a Minnesota-based health insurance company. It operates through two main divisions: UnitedHealthcare, one of the largest health insurance providers in the industry, and Optum, which offers patient care, provider services, analytics, and prescription benefit management. This extensive presence makes UnitedHealth Group a dominant force in the sector. Its vast scale provides significant bargaining power and competitive advantage, which has been a key driver of its long-term growth. Since the start of 2025, the stock has surged by over 4.5%.

UnitedHealth Group Incorporated (NYSE:UNH) recently announced its fiscal year 2024 earnings, surpassing investor expectations with strong results. The company reported $400 billion in revenue, marking an 8% increase from the previous year, fueled by growth across its various services. Operating earnings for the year totaled $32.3 billion. However, after adjusting for costs associated with a cyberattack response and difficulties in South America, adjusted operating earnings reached $34.4 billion.

UnitedHealth Group Incorporated (NYSE:UNH) delivered strong cash flow results that also met investor expectations. The company generated $24.2 billion in operating cash flow for the year, amounting to 1.6 times its net income. Over the course of 2024, it returned more than $16 billion to shareholders through dividends and share repurchases. In the fourth quarter, its return on equity stood at 23.7%, reflecting robust earnings and effective capital management.

Due to this solid cash position, UnitedHealth Group Incorporated (NYSE:UNH) holds a strong dividend history. The company started paying annual dividends in 1990 and shifted to quarterly payouts in 2010. Since then, it has raised its dividend regularly, which makes UNH one of the best dividend stocks on our list. The company offers a quarterly dividend of $2.10 per share and has a dividend yield of 1.59%, as of February 6.

As per Insider Monkey’s database of Q3 2024, 112 hedge funds owned stakes in UnitedHealth Group Incorporated (NYSE:UNH), compared with 114 in the previous quarter. The overall value of these stakes is more than $15 billion.