UnitedHealth Group Raises Dividend by 32%; Renews Share Buyback Program (UNH)

UnitedHealth Group Raises Dividend by 32%; Renews Share Buyback Program (UNH)


On Wednesday, health care benefits company UnitedHealth Group Inc. (UNH) announced that it was increasing its dividend payout by 32% and renewing its share repurchase program.

The company will now pay a quarterly cash dividend of 28 cents per share, up from its previous quarterly dividend payout of 21.25 cents per share. This next quarterly dividend will be paid on June 26 to shareholders of record on June 17.

Furthermore, the company’s Board of Directors said it was renewing its share buyback program, authorized to buy 110 million shares over time. This new program replaces the previous June 2012 authorization. The number of outstanding shares remaining under this previous program was about 63 million. The company has about 1 billion common shares outstanding.

David S. Wichmann, CFO of UnitedHealth Group, said, “The Board’s actions reflect the Company’s growth and consistent financial performance, driven by market demand for our expanding array of health benefits and services. The increased dividend improves the rate at which we return cash to shareholders, while the renewed share repurchase program strengthens and extends our ability to repurchase shares at favorable prices for the benefit of long term shareholders.”

UnitedHealth shares were inactive during pre-market trading on Wednesday. The stock is up +14.97% year-to-date.

The Bottom Line
Shares of UnitedHealth (UNH) have a dividend yield of 1.80% based on last night’s closing price of $62.36 and the company’s new annualized dividend payout of $1.12 per share.

UnitedHealth Group Inc. (UNH) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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