Bank of America shines while UnitedHealth stumbles in Q3 2025 earnings
Bank of America (BAC) and UnitedHealth Group (UNH) have reported mixed results in the third quarter of 2025. While Bank of America saw revenue growth and a strong dividend yield, UnitedHealth Group faced earnings misses and a significant portfolio hit, leading to a decline in its stock price.
Bank of America, the second-largest U.S. bank, serves over 69 million clients and processes 2.5 billion transactions monthly. Its stock offers a 2.1% annual dividend yield, with a share price of about $53. Notably, Warren Buffett's Berkshire Hathaway holds an 8.3% stake in the bank. In the third quarter, Bank of America's revenue grew 11% year over year, driven by strong performances in consumer banking and wealth management.
UnitedHealth Group, a leading healthcare company, experienced a 12% year-over-year revenue growth in the third quarter. However, its earnings reflected a low net margin of 2.1%. The company's stock has seen a significant decline of 34% in 2025, primarily due to earnings misses and a $6.5 billion hit in its Medicare portfolio. Berkshire Hathaway holds a 0.6% stake in UnitedHealth Group. Despite the challenges, UnitedHealth Group's stock offers a 2.7% dividend yield, with a share price of about $330.
A portfolio consisting of three shares of Bank of America and one share of UnitedHealth Group can be started with approximately $490. Dividend stocks, such as these, play a crucial role in a balanced portfolio, providing income for retirees and allowing reinvestment for those building wealth. Despite UnitedHealth Group's recent struggles, its dividend yield remains attractive, indicating potential for long-term growth.
