July 03, 2013 at 08:46 AM EDT
Delayed Obamacare Employer Mandate May Be a Negative for Health Care Benefits Stocks (HUM, UNH, CI, AET, WLP)

Late on Tuesday, the Obama administration announced that it is delaying a key provision of the Affordable Care Act (also known as Obamacare) that mandates companies with 50 or more employees to provide health insurance coverage to its workers. As such, Deutsche Bank analysts noted that his delay could be a negative for managed health care companies.

Deutsche Bank analyst Scott Fidel said that the delay “clearly illustrates the complexities involved in implementing this massive piece of legislation.”

Furthermore, he added that this may be a negative for managed cared companies, but it should not be a major game changer.

“Because this change to the employer coverage mandate is only a one year delay, we don’t believe this will change an employer’s long term calculus in determining whether to dump coverage since they will still have to start paying fines in 2015,” Fidel said. “However, the move will clearly limit incremental growth of employer sponsored insurance (ESI) in 2014 that may have occurred as some employers began to offer health benefits to avoid the penalties.”

Among the major stocks to keep an eye on regarding the Obamacare employer mandate delay are Humana (HUM), UnitedHealth Group (UNH), Cigna (CI), Aetna (AET), and WellPoint (WLP). Nonetheless, these stocks were inactive during pre-market trading on Wednesday.

The Bottom Line
Shares Humana (HUM) have a dividend yield of 1.30% based on last night’s closing price of $82.93 and the company’s annualized dividend payout of $1.08 per share.
Shares of UnitedHealth Group (UNH) have a dividend yield of 1.72% based on last night’s closing price of $65.27 and the company’s annualized dividend payout of $1.12 per share.
Shares of Cigna (CI) have a dividend yield of 0.06% based on last night’s closing price of $72.12 and the company’s annualized dividend payout of 4 cents per share.
Shares of Aetna (AET) have a dividend yield of 1.28% based on last night’s closing price of $62.43 and the company’s annualized dividend payout of 80 cents per share.
Shares of WellPoint (WLP) have a dividend yield of 1.84% based on last night’s closing price of $81.38 and the company’s annualized dividend payout of $1.50 per share.

Humana Inc. (HUM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars. UnitedHealth Group (UNH) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Cigna (CI) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Aetna (AET) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
Wellpoint, Inc. (WLP) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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