This Healthy High-Yielding Dividend Stock Just Increased Its Payment for the 48th Year in a Row

Core Viewpoint - Medtronic has a strong dividend history, recently raising its dividend payment for the 48th consecutive year, positioning it to potentially become a Dividend King in two years [1] Financial Performance - For the fiscal year 2025, Medtronic reported over $33.5 billion in revenue, a 4% increase from the previous year [4] - Adjusted earnings grew by 6% to $5.49 per share, with cash from operations reaching $7 billion, also up 4% [4] - The company generated $5.2 billion in free cash flow, remaining flat year over year [4] Dividend and Share Repurchase - Medtronic's dividend cost nearly $3.6 billion last year, with $2.7 billion used for net share repurchases [5] - Despite increasing the per-share dividend amount, the total dividend payment declined due to reduced outstanding shares, totaling nearly $3.7 billion in fiscal 2024 [5] Financial Position - At the end of the fiscal year, Medtronic had $2.2 billion in cash and $6.7 billion in investments, a net increase of about $1 billion from the prior year [6] - The company's strong financial profile supports its high-yielding dividend [6] Growth Outlook - Medtronic anticipates about 5% organic revenue growth for fiscal 2026, with earnings per share expected to rise by around 4% [8] - The company plans to separate its diabetes business within 18 months, aiming to enhance margins and earnings per share [9] Strategic Initiatives - Medtronic is focused on innovation and entering high-growth markets to accelerate earnings growth [10] - The CEO emphasized the strong fundamentals of the business and the potential for more profitable growth [10] Investment Appeal - Medtronic's consistent dividend growth, strong financial health, and strategic initiatives make it an attractive option for investors seeking sustainable passive income [11]