Medtronic: 45 Years Of Dividend Increases, All-Time High Yield

Summary:

  • Elective and deferred surgeries booming during the Covid reopening fell short of projections. This has weighed down the healthcare equipment space.
  • While many names in the space now have reasonable valuations, Medtronic is the most enticing for yield.
  • Boring as it may be, they have a highly diversified and stable product portfolio.
  • Exciting but getting no love from the Street is their robotic-assisted surgery. It may drive massive growth over the next 5-15 years.

Medtronic Corporate Headquarters Campus

Wolterk

The one sector which is not particularly cheap in this market is healthcare. Viewed as a safety trade, many health insurers and large pharma/biotech are flirting with 52-week highs. One exception is the health care equipment industry, which includes Medtronic (

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Q1 FY23 Medtronic revenue breakdown

Medtronic

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Medtronic Hugo robotic surgery system

Medtronic

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Disclosure: I/we have a beneficial long position in the shares of MDT, ISRG, ABBV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I am not a financial advisor. This article is general information and for entertainment purposes only. It should not be construed as being investment advice. Please do you own due diligence regarding any security directly or indirectly mentioned in this article. You should also seek advice from a financial advisor before making any investment decisions.


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