UnitedHealth Group ups dividend, considers Latin America exit

USA – UnitedHealth Group, the largest health insurer in the U.S., has announced a 5.2% increase in its quarterly dividend, raising it from US$ 2.10 to US$ 2.21 per share.

The updated dividend will be paid out on September 19, 2024, to shareholders who are on record as of September 5, 2024.

This increase highlights the company’s continued strong financial performance and its focus on giving back to investors.

“This move reflects our confidence in long-term growth and value,” the company signaled through its dividend strategy.

The boost brings the annual dividend to US$ 8.84 per share, offering a solid return for income-seeking investors.

UnitedHealth has a history of regular dividend hikes, thanks to strong performance from its core businesses, UnitedHealthcare and Optum.

These segments cover health insurance and a wide range of healthcare services, including pharmacy benefit management and data-driven solutions.

Alongside the dividend update, the company is facing some operational shifts. According to Reuters, UnitedHealth is reviewing offers to sell its Latin American business, specifically Banmedica, which runs operations in Chile and Colombia.

The company aims to raise about US$ 1 billion from the sale. UnitedHealth began pulling out of Latin America in 2022, exiting Brazil in 2023 and Peru in March 2025.

The planned sale of Banmedica has gained urgency after reports surfaced of a possible criminal accounting investigation and the recent departure of the company’s CEO.

The insurer has received four preliminary bids, including offers from:

• Acon Investments (Washington, D.C.)
• Patria Investments (São Paulo)
• Christus Health (Texas)
• Auna (Lima), which is said to be partnering with a financial investor

A final deadline for bids may be set as early as July 2025.

Meanwhile, UnitedHealth’s stock has been under pressure. The shares fell 25.5% in May, contributing to a 40% drop year-to-date. Despite the market challenges, analysts remain mostly positive about the company’s long-term outlook.

Many maintain a “buy” or “outperform” rating, citing the firm’s strong fundamentals and diversified business model.

The company’s focus remains on technology, value-based care, and expanding services through Optum, positioning it well for future growth even as it steps back from international operations.