Analysis – UnitedHealth Group Inc. Increases Dividend by 25%

UNH

UnitedHealth Group Incorporated announced a regular quarterly dividend of $0.625, a 25 percent increase from the prior rate of $0.50 per share. The dividend will be paid at the new higher rate on June 28, 2016, to shareholders of record at close of business on June 17, 2016. UnitedHealth Group is a member of the Top 100 dividend  candidates.

top100

Date Quarterly Dividend
6/17/2016 0.625
3/9/2016 0.5
12/2/2015 0.5
9/9/2015 0.5
6/11/2015 0.5
3/11/2015 0.375
12/3/2014 0.375
9/10/2014 0.375
6/12/2014 0.375
3/12/2014 0.28
12/4/2013 0.28
9/11/2013 0.28
6/13/2013 0.28
3/13/2013 0.212
12/7/2012 0.213
9/12/2012 0.213
6/13/2012 0.213
3/1/2012 0.163
12/5/2011 0.163
9/2/2011 0.163
6/3/2011 0.163
3/3/2011 0.125
12/3/2010 0.125
9/10/2010 0.125
6/3/2010 0.125

Analysis of Valuation of UnitedHealth Group Inc. (Symbol UNH).

UnitedHealth is trading below its average price/sales (P/S) range.  UnitedHealth is trading above its average historical dividend yield.

Price 6/8/16 % Yield 5 Year Div. Growth Rate  SPS    2016 P/S Ratio 10 yr P/S Low 10 yr P/S  High 5 yr max Yield % 5 yr lowest Yield %
$140.40 1.51% 16% 191.55 0.73 0.30 1.43 1.69% 1.01%

UnitedHealth Group Inc. Dividend Yield Chart (Click to enlarge)

UNH2

Explanation:  Dividend growth stocks may be valued upon historical relative price/sales and current yield analysis. Dividend stocks trading at a low historical price/sales (P/S) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/S ratio stocks.  Max P/S price target is based upon company reaching its highest historical P/S ratio.  Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years. Further information on dividend investing and evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

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