Payout Yield

UnitedHealth Group (NYSE:UNH) announced completion of the repurchase of $2 billion of stock in the third quarter and projected an additional $7 billion share repurchase through fourth quarter 2007 and 2008.

UnitedHealth Group (www.unitedhealthgroup.com) is a diversified health and well-being company dedicated to making health care work better.

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PAYOUT YIELD ANALYSIS

The $7 billion repurchase projection, or $5.6 billion on an annualized basis, would be well ahead of the $2 billion completed in 2005 and 2006.  However, with almost $14 billion of cash and investments on the balance sheet, the company will not have a problem stepping up the pace of the stock buyback program.

With 1.32 billion shares outstanding, the $5.6 billion annualized repurchase will return $4.24 per share to shareholders.  Combined with an annualized dividend of $0.03 per share, the Total Payout is projected to be $4.27 per share over the next 4 quarters.  At a share price of $48, the Total Payout Yield is projected to be 8.9%.

- Payout Yield Staff