Humana (NYSE:HUM) Declares US$1 Quarterly Dividend Payable April 25 2025

Humana (NYSE:HUM) recently announced a quarterly dividend of $0.89 per share, maintaining shareholder value and demonstrating consistent confidence from its Board of Directors. Over the past week, Humana's stock experienced a modest 2.11% increase. This movement came at a time when broader market indices like the Dow Jones and S&P 500 experienced declines of 1.5% and 0.9%, respectively, following days of record highs. The overall market's 1.2% rise within the week indicates some resilience amidst a fluctuating economic backdrop. While companies like Walmart saw share price drops due to weaker outlooks, Humana's stability may partly be attributed to its affirmed dividend, providing assurance to investors. Unlike other firms facing market volatility and pressures, Humana's performance seems relatively buoyed by its steady dividend policy, aligning positively ahead of the dividend record date set for March 28. As the market navigates broader economic challenges, Humana's shareholders may appreciate this stability.

Click to explore a detailed breakdown of our findings on Humana.

The past five years have presented challenges for Humana's shareholders, with a total return including share price and dividends amounting to a 16.02% decline. During the last year, Humana lagged behind the US Healthcare industry, which saw a 7% decline, and significantly underperformed the broader US market, which achieved a 23.7% increase.

Several key factors played a role in this longer-term performance. Notably, in 2024, Humana experienced a substantial one-off loss of US$481 million, significantly affecting its financial results. Additionally, the company faced legal hurdles, including a US$90 million settlement for a whistleblower lawsuit related to Medicare Part D contracts. Despite a share buyback program authorized for US$3 billion, completed purchases amounted to only US$73.85 million so far, representing a mere 0.17% of its shares, slightly limiting its potential impact. The company's strategic initiatives, such as partnerships and expansions, illustrate its efforts to stabilize and enhance future growth prospects. However, these factors weren't enough to counteract the overall headwinds.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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