uploads///capital allocation

UnitedHealth Group’s Dividend Payment of $0.75 Payable March 20

By

Updated

UnitedHealth Group’s quarterly dividend payment

UnitedHealth Group’s (UNH) quarterly dividends will be paid on March 20, 2018. On February 14, 2018, the company announced the authorization of a quarterly dividend payment of $0.75 per share to shareholders of record on March 9, 2018, payable on March 20, 2018. The dividend amount is the same as previous quarters and reflects an increase of ~20% compared to the quarterly dividend payment of $0.15 per share paid in the previous fiscal year. The indicated annual dividend rate for fiscal 2018 is $3 per share.

Article continues below advertisement

The company has been paying increasing dividends over the last eight years. Its average annual dividend increase over the last three years is 27%.

As of March 15, 2018, UnitedHealth Group has a dividend payout ratio of ~29.6%. It has a dividend yield of ~1.3. Peers Cigna (CI), Anthem (ANTM), and Aetna (AET) have dividend yields of 0.02, 1.3, and 1.1, respectively.

UnitedHealth Group’s capital allocation strategy

UnitedHealth Group has a consistent capital allocation strategy that focuses on maintaining consistent investments and creating value for shareholders through steadily increasing dividends aimed at reaching the market rate dividend payout. The company has a long-term, debt-to-total capital ratio target of ~40%. In 2017, it spent ~$2.8 billion on dividend payments. The share repurchases during the years were worth $1.5 billion. The company paid ~$2.1 billion for M&As (mergers and acquisitions) during fiscal 2017, which ended on December 31, 2017.

In December 2017, UnitedHealth Group announced the acquisition of DaVita Medical Group for $4.9 billion. It undertook another healthcare acquisition in December 2017 that led to total acquisition spending of $7.7 billion for both acquisitions.

Advertisement

More From Market Realist