UnitedHealth: Shareholders love this boring stock

Dhe MSCI World Index tries to reflect the development of the stock markets in 23 so-called developed markets. Not surprisingly, the United States should set the tone. The fact that the iPhone group Apple, with a market value of more than 2.5 trillion dollars, was the largest index weight should also not be surprising. Other American corporations such as Microsoft, Amazon, the electric car manufacturer Tesla and the Google parent company Alphabet were among the top ten. With the United Health Group Inc. was also represented by a company less well known to German investors.

Long-term investors were able to rake in good returns

The insurance and healthcare group from Minnetonka in the state of Minnesota recently caused positive news on the stock exchanges for other reasons. While the stock markets are weakening due to rising key interest rates, an impending recession, the uncertainties caused by the war in Ukraine and supply chain problems and, for example, the German dax has lost around 20 percent in value since the beginning of the year, the UnitedHealth share is even up 2 percent for 2022 so far. This doesn't sound like much at all, but in view of the market conditions it is anything but a matter of course.

Our author Christoph Scherbaum is a stock exchange specialist and works as a financial journalist from Ludwigsburg.

Our author Christoph Scherbaum is a stock exchange specialist and works as a financial journalist from Ludwigsburg.

Image: Christoph Scherbaum

A look at the long-term chart should also please investors, as the UnitedHealth paper has developed extremely well. Over a ten-year period, the price has increased by an average of 25 percent annually. In comparison, the price return of the American stock market index Dow Jones, in which the share is listed, is downright measly at an average of 9 percent per year.

Broad product portfolio in 150 countries

UnitedHealth focuses on premium income from covering various health insurance risks. In addition, other products and services in the health sector are offered. The company is divided into the two divisions Healthcare and Optum, but the main business with a share of sales of almost 80 percent is in the UnitedHealthcare insurance segment. This consists of the four areas Employer & Individual, Medicare & Retirement, Community & State and UnitedHealthcare Global. The latter provides medical and dental services to 7.7 million people in more than 150 countries worldwide.

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