Medtronic: The Only Medical Device Stock I'd Consider a Lifetime Hold

Core Viewpoint - Medtronic is positioning itself as a strong player in the robotic surgery market while maintaining a solid foundation in the medical device industry, with a focus on growth and innovation. Company Overview - Medtronic has a forward-looking price-to-earnings (P/E) ratio of 16.3, slightly below its five-year average of 16.7, indicating a compelling valuation [2] - The company has a dividend yield of 2.9% and has increased its dividend for 48 consecutive years, showcasing its commitment to returning value to shareholders [4] - Medtronic's payout ratio is approximately 79%, suggesting room for further dividend growth and sustainability [5] Business Operations - Medtronic operates in various treatment areas, including surgery, endoscopy, cardiac ablation, neurovascular disorders, neuromodulation, pelvic health, gastric therapies, and cranial and spinal technologies [5] - The company has over 41,000 active patent matters and employs more than 13,600 scientists and engineers across 150 countries [6] - Medtronic treats over 70 health conditions and is conducting more than 174 active clinical trials, with an annual research and development expenditure of around $2.7 billion [6] Recent Performance - In its recently reported third quarter, Medtronic achieved an 8.7% year-over-year revenue increase and received FDA approval for its Hugo robotic surgery system [8] - CEO Geoff Martha emphasized the company's focus on unlocking new markets and investing in high-growth opportunities to accelerate performance [8] Strategic Moves - Medtronic is spinning off its diabetes division, aiming for a valuation close to $8 billion, to concentrate on faster-growing business segments [7]