Steady Dividends in Uncertain Markets: Abbott Labs, Elevance Health, and UnitedHealth Group
Uncertainty in markets due to sticky July PCE inflation and a divided Federal Reserve has left investors on edge. In this environment, some stocks are punished while others with steadier cash flows and dividends are rewarded.
Abbott Laboratories (ABT) is one such stock that fits the bill, offering a diversified healthcare portfolio and long dividend record. The company generates most of its revenue from medical devices, diagnostic products, nutritional products, established pharmaceuticals, and other segments, with a market cap of $200.9 billion.
Another stock to consider is Elevance Health (ELV), a major U.S. health benefits company that provides medical, pharmacy, and related services through brands like Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon. The company has a recurring premium model and healthcare services through Carelon, with a 1.71% dividend and AI-driven cost control efforts in areas like cancer care and behavioral health.
UnitedHealth Group (UNH) is also worth considering, offering a broad healthcare platform with a 2.31% dividend, large-scale Medicare and commercial insurance, and Optum data and pharmacy services. However, the company faces challenges such as recent margin pressure, Medicare Advantage rate and acuity issues, and scrutiny of high-cost drugs and state Medicaid rates.