MDT - Medtronic: Undervalued Medical Devices Stock With Robust Demand And Strong Dividend Growth

2024-03-11 11:30:00 ET

Summary

• Medtronic is a healthcare behemoth, developing and manufacturing medical devices for chronic diseases, with a broad and dominant portfolio of industry-leading products.
• The company has increased its dividend for 46 consecutive years, which qualifies Medtronic for its status as a vaunted Dividend Aristocrat.
• The 10-year dividend growth rate is a strong 9.8%, although more recent dividend raises have been in mid-single digits.

Medtronic PLC ( MDT ) is a global developer and manufacturer of medical devices for chronic diseases. Founded in 1949, Medtronic is now a $111 billion (by market cap) healthcare behemoth that employs 95,000 people. The company reports results across four segments: Cardiovascular, 37% of FY 2023 revenue; Neuroscience, 29%; Medical Surgical, 27%; and Diabetes, 7%.

Medtronic’s product portfolio is comprised of a variety of life-saving and life-improving medical devices that include implantable defibrillators, heart valves, insulin pumps, glucose monitoring systems, pacemakers, stents, and surgical tools.

Not only is Medtronic’s product portfolio broad, but it’s also dominant. Morningstar puts it like this: “Medtronic has historically held roughly 50% share in its core heart devices. It’s also the market leader in spinal products, insulin pumps, and neuromodulators for chronic pain.”...

For further details see: