Wall Street lost $60 billion in market value after Medicare proposed 2027 payment rates that barely increased. UnitedHealth stock plunged 19% in one day, marking its worst performance since April 2025. The company’s heavy reliance on Medicare revenue poses a challenge as membership declines and regulatory pressures increase.

UnitedHealth projects a 2% revenue decline in 2026, the first since 1989. Membership loss estimates are higher than anticipated, with Medicare Advantage alone expected to shed over a million members. The company is refocusing on sustainable business, prioritizing margin recovery over top-line growth to weather the storm.

Dividend investors are advised to focus on UnitedHealth’s solid operating cash flow of $18 billion for 2026. The company remains committed to supporting the dividend, but growth may slow as it navigates challenges like membership declines and regulatory scrutiny. Earnings growth is projected to be modest, signaling a shift from historical performance.

Despite challenges, UnitedHealth’s dividend is not in immediate danger. The company aims to strengthen its balance sheet and maintain the dividend, but growth prospects are limited in the near term. Conservative income investors may find the stock less appealing for dividend growth, while aggressive investors could see value in the recent selloff if willing to endure volatility.

Read more at Yahoo Finance: Is UnitedHealth a safe dividend stock after Medicare shock?