Meet the 3.4% Yield Dividend Stock That Could Soar in 2026

Key Points

• This company has faced multiple issues in recent months that caused its stock to plunge nearly 50% year to date.

• It's poised to soar in 2026, though, as management directly addresses the issues.

• Wall Street's consensus 12-month price target reflects an upside potential of 25%.

• 10 stocks we like better than UnitedHealth Group ›

People have sung Fleetwood Mac's lyrics for decades: "Don't stop thinking about tomorrow." But investors might want to focus on a different timeline.

No one knows what tomorrow holds. At least with some companies, though, it's easier to predict better prospects in the next year than they're experiencing now. I can think of one great example off the top of my head. Meet the 3.4% yield dividend stock that could soar in 2026: UnitedHealth Group (NYSE: UNH).

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A blue chip stock that has a case of the blues

You could honestly say that UnitedHealth Group is a blue chip stock that has a case of the blues. The healthcare giant's Change Healthcare subsidiary was the victim of a highly publicized cyberattack early last year that affected 190 million people. Brian Thompson, CEO of the company's UnitedHealthcare unit, was killed in December 2024.

In UnitedHealth Group's first-quarter update in April 2025, the company reported lower-than-expected earnings and lowered its full-year guidance. The next month, it suspended full-year guidance and announced the unexpected departure of former CEO, Andrew Witty.

UnitedHealth Group yanked its full-year guidance because it didn't have a good handle on soaring medical costs. The company noted that "care activity continued to accelerate while also broadening to more types of benefit offerings" and that Medicare Advantage plans were incurring greater costs than anticipated.

To add to the troubles, The Wall Street Journal ran a story in May about a criminal investigation of UnitedHealth Group being conducted by the U.S. Department of Justice. Although the DOJ hadn't notified the company about a probe at the time, UnitedHealth subsequently confirmed it was under investigation in July.

As a result of all these issues, UnitedHealth Group's share price has plunged almost 60% below its peak set in late 2024. The health insurance stock is down nearly 50% year to date.

Poised to soar in 2026

Now for some good news: UnitedHealth Group stock should be poised to soar in 2026. Is this just wishful thinking that a beaten-down stock will rebound? Nope.

For one thing, UnitedHealth Group's management projects a return to growth next year. Executives have solid reasons for this expectation. UnitedHealthcare CEO Tim Noel said in the company's second-quarter update that his unit is implementing "strongly responsive pricing for 2026." Translation: Hefty increases to health insurance premiums will more than offset higher medical costs.

But the health insurer is going beyond premium increases. UnitedHealthcare is also beefing up its clinical policy auditing. It's shifting to narrower networks, especially with Medicare Advantage plans. The unit is also scaling up artificial intelligence (AI) efforts to control costs.

Similar efforts are underway in UnitedHealth Group's Optum business. Optum CEO Patrick Conway said in the Q2 earnings call that his unit is "increasing rates to reflect the higher risk profiles and acuity we are seeing." He also mentioned that Optum is exercising "operating cost discipline" to reduce costs.

What about the DOJ investigation? That remains a wild card. However, UnitedHealth Group issued a statement on July 24 that said the company is cooperating fully with the DOJ and "has full confidence in its practices." It's worth noting that the DOJ previously conducted a decade-long investigation of UnitedHealth's Medicare Advantage business, with a court-appointed Special Master ultimately concluding there was no evidence of wrongdoing.

Wall Street agrees

I think that UnitedHealth Group's share price will rebound sharply once investors see profits grow robustly again. Most Wall Street analysts seem to agree with that assessment, by the way.

Of the 26 analysts surveyed by financial data and infrastructure provider LSEG in August, 19 rated UnitedHealth Group as a "buy" or a "strong buy." The consensus 12-month price target for the stock reflects an upside potential of 25%. If analysts are right (and I suspect they are), this beaten-down blue chip stock won't have a case of the blues for very much longer.

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Keith Speights has no position in any of the stocks mentioned. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.