14 Best Large Cap Dividend Growth Stocks To Buy Now

7. UnitedHealth Group Incorporated (NYSE:UNH)

5-Year Average Annual Dividend Growth Rate: 14.59%

UnitedHealth Group Incorporated (NYSE:UNH) ranks seventh on our list of the best dividend stocks. The American health insurance company offers a wide range of related products and services to its consumers. The stock has surged modestly by just 1.9% in the past year. Analysts believe that the company may face a somewhat challenging operating environment next year, its strategic initiatives and pricing strategies are likely to drive growth. In addition, the company has effectively improved its operating cost ratio through strategic portfolio initiatives, which bodes well for future profitability. Its diversified portfolio also gives it a competitive edge in the market.

UnitedHealth Group Incorporated (NYSE:UNH) reported its fiscal year 2024 earnings, surpassing investor expectations with strong performance. It generated $400 billion in revenue, an 8% increase from the previous year, driven by growth across its diverse services. Operating earnings for the year were $32.3 billion, but after accounting for expenses related to a cyberattack and challenges in South America, adjusted operating earnings reached $34.4 billion.

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

With a solid cash position, UnitedHealth Group Incorporated (NYSE:UNH) has established a strong dividend history. The company began paying annual dividends in 1990 and switched to quarterly payouts in 2010, consistently increasing its dividend ever since. The company offers a quarterly dividend of $2.10 per share and has a dividend yield of 1.59%, as of February 12.