Top 10 Dividend 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 that a wide range of related products and services to its consumers. On February 24, the company declared a quarterly dividend of $2.10 per share, which was in line with its previous dividend. The company began issuing annual dividends in 1990 before transitioning to quarterly payouts in 2010, consistently increasing its dividend since then. The stock has a dividend yield of 1.82%, as of February 25.

UnitedHealth Group Incorporated (NYSE:UNH) has fallen by over 8% since the start of 2025. While analysts anticipate a somewhat challenging operating environment in the coming year, its strategic initiatives and pricing strategies are expected to support growth. In addition, the company has enhanced its operating cost ratio through strategic portfolio adjustments, strengthening its long-term profitability. Its diversified portfolio further provides a competitive advantage in the market.

UnitedHealth Group Incorporated (NYSE:UNH) exceeded investor expectations with its fiscal year 2024 earnings, delivering strong performance. Revenue for the year rose 8% to $400 billion, driven by growth across its broad range of services. Operating earnings totaled $32.3 billion, but after adjusting for expenses related to a cyberattack and challenges in South America, adjusted operating earnings stood at $34.4 billion.

UnitedHealth Group Incorporated (NYSE:UNH)  also reported solid cash flow results, aligning with investor expectations. It generated $24.2 billion in operating cash flow for the year, equivalent to 1.6 times its net income. Throughout 2024, UnitedHealth returned more than $16 billion to shareholders through dividends and share repurchases. In the fourth quarter, its return on equity reached 23.7%, reflecting strong earnings and efficient capital management.