Hello alwynd,
After looking into a few ideas, I have come to the conclusion that using UMG to display an enemies HUD as it would be seen in 3D space above the characters would not be the most optimum method at the moment. That being said, feel free to try out UMG and if you come up with a solution I would be very interested in seeing what you come up with. For the moment I have a health system working using the billboard setup. I will keep working on it and provide updates with any breakthroughs that I have.
Make it a great day