CI - Cigna: Will Benefit From Lower Medicaid Enrollments

2024-06-11 15:03:49 ET

Summary

• Cigna Group's dividend growth potential and strong financial performance make it worth considering for long-term investors.
• The company's revenue for the quarter grew by 23.3% year over year, with strong growth in its Evernorth Health Services segment.
• Management's outlook projects a 6% to 9% estimated growth rate for the company, with potential for increased market share and higher revenues.
• As Medicaid enrollments drop, this can translate to an increase in customers looking for alternative healthcare insurance.

Overview

I am always on the hunt for high-quality companies as a long-term dividend growth investor. I strongly believe in the philosophy that dividend investing makes it a lot easier to stick with a long-term outlook and enables you to have a stronger emotional resistance to fluctuating stock prices. This is because the steady income that's provided makes it really easy to continue holding, as my priority shifted from looking at the value of my investment and instead focusing on how much cash flow my investments produce over time. This is how I came across The Cigna Group ( CI )....

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