Three Top Dividend Stocks Shine with Strong Growth and Stability

Investors looking for high-quality dividend stocks often seek companies with well-covered dividends that yield above-average returns. The Globe and Mail recently highlighted three such stocks, each with a strong track record of growth and stability.

The first stock on the list is UnitedHealth Group (UNH), which serves as America's largest health insurer. While its insurance division is well-known, UNH also has a significant presence in medical-care coordination, pharmaceutical services, and health data analytics through its Optum business unit.

UnitedHealth shares have bounced back from a sluggish start to the year, outperforming both the S&P 500 and healthcare sectors. The company's recent second-quarter earnings report beat Street estimates, driven by strong Medicare Advantage results. Oppenheimer analysts upgraded their earnings estimates for UNH in response, citing its diversification, management team, and exposure to higher-growth businesses.

UnitedHealth has a robust buy camp, with 22 Buys against four Holds and no Sells. The company's dividend yield stands at 2.5%, while its payout ratio is around 50% of projected profits. This leaves room for modest dividend growth in the future.