UnitedHealth Group raises dividend by 34 percent

Jun 6 2014

Despite its lackluster performance in the first quarter, attributed to government cuts to Medicare Advantage programs and new taxes, the insurer's stock has climbed 28 percent since June 4, 2013, the day before its last dividend increase.

The Wall Street Journal: UnitedHealth Group Raises Dividend By 34 Percent
UnitedHealth raised the quarterly payout to shareholders to 37.5 cents, an increase of 9.5 cents from the 28-cent dividend the company has paid since the second quarter of 2013. … UnitedHealth in April said its first-quarter earnings fell 7.8%, hurt by government cuts to Medicare Advantage programs and new taxes. The period was the first to reflect the Affordable Care Act. Planned reductions in government funding for Medicare Advantage and other provisions of the health law are expected to affect the managed-care provider's performance this year (Prior, 6/4).

The Associated Press: Insurer UnitedHealth Raises Dividend By 34 Percent
UnitedHealth is once again hiking the quarterly dividend it gives shareholders by more than 30 percent, with the latest increase tripling the initial value of a payout the nation's largest health insurer debuted in 2010. ... Companies often look to spend the cash they pile up from strong performances on shareholder dividends or stock buybacks. If their share price grows, they can face shareholder pressure to raise the payout and avoid diluting the yield. UnitedHealth's stock has climbed 28 percent since June 4, 2013, the day before its last dividend increase (6/4).