UnitedHealth Group (NYSE: UNH) shares are trading at five-year lows following disappointing earnings reports and rising costs. The company has withdrawn its financial guidance and initiated a CEO change, while the Department of Justice is reportedly investigating its billing practices. From June 2022 to June 2023, the stock has decreased by 40%.
Over the past 12 months, UnitedHealth reported profits of $22 billion on revenues of $410 billion, maintaining a profit margin exceeding 5%. Additionally, the company offers a dividend yield of 2.9%, significantly higher than the average S&P 500 yield of 1.3%. Its current quarterly payout stands at $2.21 per share, a 77% increase from five years ago, resulting in a compound annual growth rate of over 12%.
Despite current challenges, analysts suggest UnitedHealth could remain a long-term investment option, projecting growth rates between 13% and 16% per year.
