United Healthcare: talk about dividend growth

Another day, another dividend.

I didn’t receive anywhere close to Monday’s $3.09, but I did bring home a dividend for the second straight day to start the week.

Here are some thoughts on today’s dividend, which boosted my September total to $26.49 and my 2017 mark to $226.26.

Today’s Dividend: $0.75 from United Healthcare

The dividend was my third from the company. The first payment was for $0.63 back in March. Each of the last two were for the current quarterly amount.

United Healthcare has been on quite a run lately. It’s up almost 20% until today’s 2% dip stole some of the wind from its sails.

I love the appreciation, but I really love United Healthcare’s dividend. The 1.54% yield isn’t as high as I’d like, but I can easily look past that considering all the other numbers are just so damn good.

The payout ratio is super low (30%), meaning the company, as long as it keeps making money, will have no trouble boosting its dividend in the future – something it’s done for each of the last seven years. United Healthcare raised its dividend 26.7% in 2016. Pretty good, right? The crazy thing, though, is it bulked up its dividend by even more each of the previous two years. It all adds up to 31.2% annualized divided growth over the last three years, which is pretty freaking impressive.

United Healthcare was paying a dividend of $0.375 as recently as 2015. Chew on that for a minute. That wasn’t all that long ago, people.

I wish I owned more than the one share, but, well, think I may have missed the boat a little bit. I opened a position back in February for $162.61. The current price tag, almost $200 a share, is a little steep when you consider I usually invest, at most, $400 in a given month. I could buy a share or two, but hate scooping up companies so close to their 52-week highs (UNH is just about 3% off its high of $200.76).

Anyway, that’s all for now.

March on!


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