Reuters: Mergers News: UPDATE 1-UnitedHealth raises dividend by 30 percent

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UPDATE 1-UnitedHealth raises dividend by 30 percent Jun 6th 2012, 12:46 Wed Jun 6, 2012 8:46am EDT * Authorizes new buyback of 110 million shares * Shares rise 1.5 pct in premarket June 6 (Reuters) - UnitedHealth Group Inc said it was raising its dividend by more than 30 percent and would seek to buy back more of its shares. The largest U.S. health insurer by market value said its board had authorized a quarterly dividend of 21.25 cents per share, payable June 22. Previously, the quarterly payout was 16.25 cents per share. The board also authorized the repurchase of 110 million of the company's shares over time. That replaces a previous, similar-sized buyback authorization, of which about 33 million shares were remaining. The new authorization represents more than 10 percent of UnitedHealth's 1 billion shares outstanding. The announcement comes ahead of a ruling by the U.S. Supreme Court, expected later this month, on President Barack Obama's healthcare law, which could lead to volatility in the shares of health insurers. The dividend increase "highlights management's long-term confidence and further supports the view that whatever the court may decide, downside to actual business fundamentals is nominal," Susquehanna Financial Group analyst Chris Rigg said in a research note. UnitedHealth shares rose 1.5 percent to $56.89 in premarket trading. Link this Share this Digg this Email Reprints

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