Although it’s impossible to predict the exact trajectory of the market in 2024, identifying top-notch stocks that can endure the test of time in your investment portfolio doesn’t have to be complex. Exceptional companies with solid financial health, wide and expanding target markets, and significant competitive advantages typically perform well in various economic conditions.
These are the types of companies you should aim to invest in and consistently add to your portfolio over time. With that goal in mind, if you are looking to invest $1,000 in stocks now, here are two outstanding companies to include in your investment basket.
1. UnitedHealth Group
UnitedHealth Group (NYSE: UNH) is among the largest healthcare firms globally, operating a diverse business that caters to the wide range of needs of providers and consumers in this sector. The company has two primary business divisions.
UnitedHealthcare segment offers various insurance plans to employers and individuals worldwide. On the other hand, its Optum segment provides solutions ranging from in-person and in-home healthcare services to software services, consulting, analytics, pharmacy care services, and more, catering to consumers, care providers, and government entities.
Not only is the company experiencing robust revenue growth due to the consistent performance of its core business segments, but it also maintains a track record of profitability. In 2023, UnitedHealth Group reported a total revenue of $372 billion, marking a 15% increase from 2022, and earnings from operations of $32 billion, up 14% from the previous year.
The company’s full-year operating cash flow stood at $29 billion, with a total return on equity of 27% in 2023. UnitedHealth is also committed to paying dividends, currently yielding around 1.6%, in line with the average stock on the S&P 500. The company has been paying dividends in some form for 35 years, with its payout having grown by 400% over the past decade.
The market share of UnitedHealth Group in the U.S. health insurance industry stands at approximately 15%. As a reference, this sector is expected to reach a valuation of $2.5 trillion by 2030. With its broad presence across all healthcare services,…
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