Core Viewpoint - Medtronic is highlighted as an attractive investment primarily due to its impressive dividend track record, having increased dividends for 48 consecutive years, positioning it to potentially join the ranks of Dividend Kings [1][3]. Dividend Program - The company has a remarkable history of increasing dividends, which is a strong indicator of its reliability and business stability [3][7]. - Achieving 48 years of consecutive dividend increases is a significant accomplishment, suggesting that Medtronic is a steady and reliable business that performs well regardless of economic conditions [4][7]. Financial Performance - Medtronic's revenue growth is consistent, supported by its extensive portfolio in the healthcare industry, although it may not be exceptionally high [6]. - The company has a gross margin of 67.46% and a dividend yield of 2.92%, indicating strong financial health [6]. Business Strategy - Management is divesting from its low-margin diabetes-care business, which is expected to enhance operating margins and profits [8]. - New product launches, such as the Hugo robot-assisted surgery system and pulse-field ablation treatment, are anticipated to drive sales growth in the medium term [9]. Market Position - Medtronic is one of the largest medical device companies globally, with a market capitalization of $124 billion [10]. - The stock is particularly appealing to income-seeking investors rather than those looking for high-growth opportunities [9].
1 Reason I'd Buy Medtronic Stock and Never Sell