John Allison’s Unio Capital Portfolio: 5 Dividend Stocks

1. Cigna Corporation (NYSE:CI)

Dividend Yield as of July 3: 1.64%
Unio Capital’s Stake Value: $1,270,000

Cigna Corporation (NYSE:CI) is an American healthcare and insurance company that offers Medicare plans to its consumers.

At the end of Q1 2022, Cigna Corporation (NYSE:CI) was the largest holding of Unio Capital, as the hedge fund owned nearly 66,000 shares worth over $1.27 million. The company accounted for 6.71% of John Allison’s portfolio.

Cigna Corporation (NYSE:CI) has been making dividend payments for the past 31 years. The company’s current quarterly payout stands at $1.12 per share, raising it by 12% in February. The stock’s dividend yield, as of July 3, stood at 1.64%. In June, Morgan Stanley upgraded Cigna Corporation (NYSE:CI) to Overweight, with a $296 price target, up from $283. The firm believes that the company is well-positioned to benefit from Humira biosimilars, which are expected to hit the market in 2023.

At the end of Q1 2022, Cigna Corporation (NYSE:CI) was a popular buy among hedge funds, with 63 funds owning stakes in the company, up from 53 in the previous quarter, according to Insider Monkey’s data. The collective value of these stakes is roughly $2.7 billion. Among these hedge funds, Glenview Capital was the company’s largest stakeholder in Q1, having stakes worth over $382.4 million.

Davis Funds mentioned Cigna Corporation (NYSE:CI) in its Q4 2021 investor letter. Here is what the firm has to say:

“Healthcare is included in the portfolio both for company-specific reasons, as well as big picture trends. At the company level, we hold select companies in pharmaceuticals, healthcare services and health insurance at attractive valuations. This is at a time when the average age of the U.S. population is fast approaching 40, older than Asia-Pacific and a little younger than the aged populations of Europe and Japan. The number of seniors in the U.S.—i.e., 65 years or older— now surpasses 54 million, or about 15% of the population. Seniors, on average, take a much greater number of medications and account for a large and disproportionate share of healthcare spending, and we expect that trend to continue due to both raw demographics and a proliferation in the number of available treatments and services available now, the latter being driven by innovation and investment in the healthcare industry. Representative holdings in the Fund include Cigna, United Health Group, Viatris and Quest Diagnostics.”

You can also take a look at 10 Dividend Stocks to Buy According to Bryan Hinmon’s Motley Fool Asset Management and Bill Gates’ Latest Stock Portfolio: Top 10 Picks.

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