1. UnitedHealth Group Incorporated (NYSE:UNH)
Dividend Yield as of December 28: 1.68%
Number of Hedge Fund Holders: 112
UnitedHealth Group Incorporated (NYSE:UNH) is a diversified healthcare company that provides health benefit plans and services to individuals, employers, and Medicaid recipients, along with care delivery, management, and wellness services. The company also offers software and consulting for healthcare organizations and provides pharmacy care services, including retail, home delivery, and drug management programs. UnitedHealth Group Incorporated (NYSE:UNH) ranks 1st on our list of the best dividend stocks in the pharma space.
UnitedHealth Group Incorporated (NYSE:UNH) has had a strong year, serving over 2 million new consumers with commercial offerings and filling more than 1.6 billion prescriptions through Optum Rx. The company also cares for 4.7 million people in value-based arrangements. The company remains optimistic about the future, even amid pressures in the healthcare sector. For instance, UnitedHealth’s launch of a national gold card program aims to reduce prior authorizations, improve care quality, and reduce friction.
In terms of financial performance, UnitedHealth Group Incorporated (NYSE:UNH) reported Q3 revenues of $101 billion, a 9% increase from the previous year, with strong growth in both Optum and UnitedHealthcare. OptumHealth saw revenues grow by $2 billion, driven by an increase in services for patients with complex needs, while OptumRx grew by $5 billion, fueled by a rise in pharmacy care offerings and new customers. UnitedHealthcare’s commercial business added 2.4 million new members, contributing to the company’s overall growth. The company has returned $9.6 billion to shareholders through dividends and share repurchases, while investing over $11 billion in strategic initiatives, including expanding partnerships like their collaboration with AARP to better serve older Americans.
According to Insider Monkey’s third quarter database, 112 hedge funds were long UnitedHealth Group Incorporated (NYSE:UNH), compared to 114 funds in the prior quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company, with 3.7 million shares worth over $2 billion.
Overall, UnitedHealth Group Incorporated (NYSE:UNH) ranks first on our list of the best pharma stocks. While we acknowledge the potential of UNH to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UNH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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