UnitedHealth, Warren Buffett and UNH stock
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US stocks were mixed on Friday as Wall Street tempered its rate-cut hopes amid economic data this week that showed higher-than-expected wholesale inflation and a rise in July retail sales. A meeting between President Trump and Russian President Vladimir Putin was also in focus as traders looked for clues on how the outcome could steer markets.
Year to date, the stock has fallen by nearly 45%, which is by no means normal for the healthcare stock. In fact, this is the worst it has performed since the Great Recession, when it tumbled by more than 54% in 2008.
Warren Buffett, Michael Burry and Andrew Left may not always agree on which stocks have good valuations. The three are all long UnitedHealth stock.
UnitedHealth Group ( UNH 12.04%) has been a solid dividend growth stock for years. Generally, its yield has been fairly low, due to the stock's rising value. Even as the healthcare insurance giant has grown its dividend, its yield hasn't been particularly high or noteworthy.
Berkshire Hathaway’s UnitedHealth Group Incorporated investment highlights confidence in healthcare. Click for why I am bullish on UNH stock prospects.
UnitedHealth Group says it expects revenue of between $445.5 billion and $448 billion for fiscal 2025 and adjusted earnings per share (EPS) of “at least” $16.
Meanwhile, the healthcare giant pays an $8.84 annual dividend, yielding about 3.38%. UnitedHealth has raised its dividend for 15 consecutive years, including a 5.2% increase last quarter. You're collecting a sizable yield backed by roughly $30 billion in annual operating cash flow, giving you steady income while you wait for the recovery.
U.S. equities were mixed at midday following the release of the July retail sales report, which came in as expected.
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Investor's Business Daily on MSNStock Market Today: Dow Jones Rallies As UnitedHealth Surges On Warren Buffett Buy (Live Coverage)
Futures for the Dow Jones Industrial Average and other major stock indexes traded sharply mixed Friday as Wall Street reacted to the U.S. retail sales report. Meanwhile, UnitedHealth GroupUNH soared on the stock market today after famed investor Warren Buffett disclosed a new position.