Monday, May 22, 7:49 am EST. Running the search again, after Friday’s close, the very first issue the arises, is once again… UNH, United Healthcare.
This $166 billion behemoth is at the top of the heap of healthcare insurers. It is projected to earn some $9.82 a share 12 months from now, and that looks to account for an 18% growth rate. The P/E on the estimate is a not unreasonable 17.58:1; so, we’re not looking at undervalued here. Price is much closer to a new high, than any recent buy-point low.
It currently pays a 1.45% dividend yield of $2.50 a share, and it’s been raising that handily, and is believed to be able to continue to do so at a lively 17% annual rate. This dividend doubles to shareholders every 4.24 yrs, at a rate like that. We compound the rate of growth to us, by adding more shares, whenever it seems prudent, and the result will be a steady growing income in retirement.
Now I show UNH as having one of the very safest dividends in the universe, as that $2.50 dividend is only 25.46% of its projected earnings.
The repeal and replacement of Obamacare isn’t going to hurt UNH… they’ve pulled out of nearly all the ‘exchanges’ already, as being unprofitable and unworkable, and are dropping the rest in ’18. If any good replacement of Obamacare should come of everything, UNH will only do better, as they should be able to greatly reduce their costs, and sign on many more new applicants. This remains to be seen, but they’re in the saddle to make healthcare insurance work, however the new legislation comes out… cause, if they don’t, we’ll be left with a gov’t single-payer, socialized medical system, and America has made it real clear… they don’t want any part of that! Got UNH?
Have any questions concerning UNH? Don’t hesitate to ask.
Here’s to your successful investing!
Harold F Crowell