11 Best Dividend Paying Stocks to Buy According to Hedge Funds

2. UnitedHealth Group Incorporated (NYSE:UNH)

Number of Hedge Fund Holders: 150

UnitedHealth Group Incorporated (NYSE:UNH) is an American health insurance company. It is well-positioned for steady growth thanks to its broad-based business model, which spans health insurance, pharmacy benefit management, and healthcare services. This integrated setup not only enhances care efficiency but also boosts cross-selling opportunities. The stock is returning strong returns this year, surging by nearly 19% since the start of 2025.

Analysts have praised the company’s ability to trim its operating cost ratio, which dropped to 13.2% in 2024 from 14.7% the previous year, largely due to strategic adjustments in its business portfolio—moves that support long-term profitability.

In fiscal 2024, UnitedHealth Group Incorporated (NYSE:UNH) surpassed investor expectations, with revenue climbing 8% to $400 billion, supported by solid performance across all service areas. Operating earnings came in at $32.3 billion, and after accounting for expenses tied to a cyberattack and difficulties in South America, adjusted earnings totaled $34.4 billion.

UnitedHealth Group Incorporated (NYSE:UNH) also maintained robust cash flow, generating $24.2 billion in operating cash flow, equivalent to 1.6 times its net income. It returned more than $16 billion to shareholders via dividends and share repurchases. The company’s return on equity reached 23.7% in the fourth quarter, reflecting both strong earnings and effective capital allocation. UnitedHealth paid a quarterly dividend of $2.10 per share, yielding 1.40%, as of April 12. The company has consistently paid dividends since 2010.