5 Healthcare Dividend Stocks Hedge Funds are Buying

1. UnitedHealth Group Incorporated (NYSE: UNH)

Number of Hedge Fund Holders: 89
Dividend Yield: 1.4%

UnitedHealth Group Incorporated (NYSE: UNH), a diversified healthcare company based in America, ranks 1st on our list of healthcare dividend stocks that hedge funds are buying. The company operates through its UnitedHealthcare, OptumHealth, OptumInsight, and OptumRx segments.

This July, Stephens raised its price target on shares of UnitedHealth Group Incorporated (NYSE: UNH) from $440 to $460. The firm’s analyst Scott Fidel lead the increase in price target, while also reiterating an Overweight rating on UnitedHealth Group Incorporated (NYSE: UNH) shares.

In the second quarter of 2021, UnitedHealth Group Incorporated (NYSE: UNH) had an EPS of $4.70, beating estimates by $0.24. The company’s revenue was $71.32 billion, up 14.78% year over year and beating estimates by $1.77 billion. UnitedHealth Group Incorporated (NYSE: UNH) has gained 27.64% in the past 6 months and 19.37% year to date.

By the end of the first quarter of 2021, 89 hedge funds out of the 866 tracked by Insider Monkey held stakes in UnitedHealth Group Incorporated (NYSE: UNH) worth roughly $12.1 billion. This is compared to 91 hedge funds in the previous quarter with a total stake value of approximately $10.1 billion.

ClearBridge Investments, an investment management firm, mentioned UnitedHealth Group Incorporated (NYSE: UNH) in its second-quarter 2021 investor letter. Here’s what they said:

“A good way to conceptualize how we think about portfolio construction is to picture a pyramid. At the bottom of the pyramid are the durable compounding growth companies that form the strong foundation, resilience and consistency for the Strategy. We think these companies should comprise just under half of portfolio assets and feature annual revenue growth rates ranging from two times GDP up to 20% as well as healthy free cash flow generation.

UnitedHealth Group, a name we have owned in the Strategy since 1992, is a good example of a long-term compounder, having grown its revenue base from approximately $600 million to north of $260 billion over that time frame. It remains constantly focused on investing in new growth drivers such as telemedicine and health care analytics. Broadcom and Comcast have delivered similar long-term appreciation through a combination of organic growth, capital deployment into new and adjacent opportunities through merger and acquisition activity as well as returning capital to shareholders through buybacks and dividends.”

You can also take a look at Top 10 Large-Cap Healthcare Stocks to Buy Now and 15 Biggest Money Transfer Companies In The World.

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