Even though many feel that health care reform harms health insurance stocks, that is certainly not the opinion of Wall Street based on the performance of UnitedhealthGroup (NYSE: UNG), Cigna (NYSE: CI), and WellPoint (NYSE: WLP).
All are up substantially since The Affordable Care Act, or ObamaCare became the law of the land.
UnitedhealthGroup is up more than 26 percent for the last year of market action. Over the same period,Cigna has risen over 27 percent. For Wellpoint over the last year, the gain has been more than 40 percent.
The future looks strong, based on The Affordable Care Act.
The goal of ObamaCare is to insure all Americans. Even though the first enrollment period went well with the initial goals exceeded, there are still tens of millions of Americans without health insurance. Those should all be potential customers for Cigna, UnitedhealthGroup, and WellPoint. That is a huge new market to be tapped for American health insurance companies. It is especially appealing for market leaders like Cigna, WellPoint, and UnitedhealthGroup!
It is difficult to see the goals of ObamaCare changing in that regard.
Obama campaigned on insuring all Americans. That is bullish for the future of health insurance companies. This is demonstrated by how well all have done during the four years that The Affordable Care Act hasbeen law.
Making the wait to insure the millions of more Americans is the dividend income of each.
WellPoint has a dividend yield of around 2 percent. That is about the average for a Member of the Standard & Poor’s 500 Index (NYSE: SPY). Both Cigna and UnitedhealthGroup also pay dividends. All have the cash flow to increase the amount of the dividend to reward long term shareholders.
No matter what one’s position on ObamaCare, there is no doubt how beneficial it has been for Unitedhealthgroup, WellPoint, Cigna, and many other publicly traded health insurance firms!