MDT

Medtronic is one year away from achieving Dividend King status with 49 consecutive years of dividend increases. An investor would need approximately 348 shares (costing ~$32,792) to generate $1,000 in annual dividend income at the current 3% yield. The recent MiniMed spinoff positions Medtronic to focus on higher-margin businesses, potentially enabling larger dividend increases and earnings growth of 7-8% in coming years.

Medtronic is expanding its presence in high-growth markets including cardiac ablation (up 88%), robotics, and structural heart, while advancing the MiniMed separation. The company is building its hypertension business through the Symplicity Spyral renal denervation franchise with improved reimbursement and clinical evidence. However, Medtronic faces headwinds from tariffs, inflation, currency fluctuations, and unfavorable product mix that could pressure margins.

Medtronic stock closed up 1.17% at $93.01, outperforming the broader market decline. The company is expected to report quarterly EPS of $1.34 (down 1.47% YoY) and revenue of $9.47 billion (up 5.66% YoY). With a Zacks Rank of #3 (Hold) and a Forward P/E of 15.38 (below industry average of 19.61), MDT trades at a valuation discount despite modest earnings headwinds.