UnitedHealth Is a Dividend-Raising, Share-Repurchasing Machine

UnitedHealth (UNH) hiked its dividend by a whopping 34% last week, proving again why UNH has a reputation for shareholder friendliness. Dividend boosts of 30%-plus are nothing to take lightly, but they’re almost routine for UNH stock. UnitedHealth raised its dividend by 32% last year and 31% the year before. UNH began paying regular quarterly dividends in 2010, and growing the dividend has quickly become an annual ritual.

After the most [recent] increase, UNH stock will pay $1.50 per share, which works out to a dividend yield of about 1.9%, roughly in line with the market average. Of course, UnitedHealth’s cash spend isn’t limited to dividends. UNH also has been a serial repurchase of its stock, reducing its share count by 30% since 2008. And UnitedHealth has the authorization in place to buyback another $100 million, or roughly 10% of the remaining shares of UNH stock outstanding.

Source: InvestorPlace

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