UnitedHealth Stock Climbs: What's Going On?

UnitedHealth Group Inc. (NYSE:UNH) shares are rising Wednesday as health care stocks climb and the company announces a dividend payout. Here’s what you should know.

• UnitedHealth Group stock is showing upward bias. What’s the outlook for UNH shares?

UnitedHealth Stock Rises as Health Care Stocks Climb

UnitedHealth stock is gaining Wednesday, changing hands at roughly $408 as health care shares advance as a group. The sector fund XLV added 2.50%, the sixth-best showing among the 11 sectors, and UnitedHealth is gaining less than that. Consumer discretionary stocks led the market, with XLY up 4.07%, while the energy fund XLE dropped 5.27%. Eight sectors rose and three fell.

Recent performance has been stronger than this week’s. UnitedHealth has risen approximately 9.62% in a month and 9.96% in six months, although it has gained only about 0.14% over five days.

The company’s board also approved a cash payout of $2.32 per share. The payment goes out Dec. 15 to holders on the company’s books at the Dec. 7 close.

A dividend can support a stock for a few reasons. It signals that the board is confident in the company’s cash flow, it gives income-focused investors a reason to own the shares and it can draw buyers who want to hold the stock through the Dec. 7 record date.

UnitedHealth Stock Technical Read: A Recovery From the October Low

The shares are recovering from a pullback. Since bottoming at $362.60 on Oct. 1, the stock has bounced almost 12%, though it remains below its July 16 high of $461.62. UnitedHealth trades above its rising 200-day average of $363.77, along with its 20-day average of $402.62 and its 50-day average of $390.69. Heavy volume backs Wednesday’s advance.

Momentum looks weaker. The MACD indicator reads 5.436, positive but lagging its 6.485 signal line, which can point to fading momentum even in an uptrend.

UNH Shares Are Moving Higher

UNH Price Action: UnitedHealth shares were up 1.04% at $408.66 at the time of publication on Wednesday, according to Benzinga Pro data.

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