• Dividend Brief
  • Posts
  • This Healthcare Dividend Giant Combines Reliable Income with Innovation-Driven Growth

This Healthcare Dividend Giant Combines Reliable Income with Innovation-Driven Growth

Author

Noah Zelvis
August 25, 2025

Medtronic plc (NYSE: MDT) is a global leader in medical device manufacturing for complex and challenging conditions.

It is renowned for its innovation and market presence across 70 diverse health conditions, including Parkinson's, with 79 million patients served. 

For dividend investors, MDT presents a unique opportunity right now, as the stock is trading at a relative discount amid a pivotal moment in the company’s growth cycle.

The medical device sector, much like the broader pharmaceutical industry, is inherently cyclical.

Lengthy research and development phases, clinical trials, and regulatory approvals often result in extended periods of quiet before a surge in activity.

Medtronic is now entering that next phase, with a growing pipeline of innovations ready to reach the market.

This transition could unlock significant upside potential for shareholders.

Historically resilient, Medtronic has consistently delivered dividends, providing steady income even during market lulls.

With a robust dividend yield, a well-timed entry now allows investors to capture both potential capital appreciation and ongoing income as new products drive future growth.

In short, Medtronic is not just a stable dividend payer – it’s a company positioned for the next wave of innovation, making it a compelling addition to an income-focused portfolio.

In partnership with

Big investors are buying this “unlisted” stock

When the founder who sold his last company to Zillow for $120M starts a new venture, people notice. That’s why the same VCs who backed Uber, Venmo, and eBay also invested in Pacaso.

Disrupting the real estate industry once again, Pacaso’s streamlined platform offers co-ownership of premier properties, revamping the $1.3T vacation home market.

And it works. By handing keys to 2,000+ happy homeowners, Pacaso has already made $110M+ in gross profits in their operating history.

Now, after 41% YoY gross profit growth last year alone, they recently reserved the Nasdaq ticker PCSO.

Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals.

Never Miss a Stock Recommendation Again!

We now send our dividend picks right to your phone via text, so you’ll get the same actionable moves without having to open your inbox.

Operational Overview and Recent Earnings

Founded 75 years ago in a Minneapolis garage, Medtronic has grown to become one of the most notable medical device companies worldwide.

Co-founder Earl Bakken created the first-ever battery-operated pacemaker in 1957, with the first implantable device following 12 years later.

From heart valves to implantable cardioverter defibrillators, remote device monitoring to background insulin doses, Medtronic has been at the forefront of medical device breakthroughs for the better part of a century. 

Today, the company has a diverse portfolio of products, solid free cash flow, and more than 170 products in clinical trials.

In the 2025 financial year, Medtronic invested more than $2.7 billion in research and development and paid $3.6 billion in dividends. 

Its most recent earnings cover Q1 of FY2026. It has reported an 8.4% increase in revenue, including a 72% growth in US revenue for its Cardiac Ablation Solutions.

Its Neuroscience Portfolio revenue increased by 4.3%, while the Medical Surgical Portfolio revenue of $2.083 billion represented a 4.4% increase.

Revenue from the firm’s Diabetes business grew by 11.5%, with overall operating profit increasing by 13%.

Action: MDT is currently trading a little below fair value. Consider building a position now before prices increase.

Millionaire Move Revealed (Sponsored)

What if you knew EXACTLY what to look for in a trade before you took it?  
 
Better yet...  
 
What if you also didn’t have to risk a fortune to target 100%, 300% or even 1,000% within days... or even HOURS?  
 
Over the past few years, Millionaire Trader Nate Bear has been using a special $2 (or less) trade to collect MASSIVE returns, like.... 

$65 into $800 in 2 days... 
 
$246 into $903 within hours... 

$305 into $1,205 overnight... 

$1,250 into $11,540 overnight... 

Or even $3,650 into $14,677 overnight...  

He calls them “lotto trades”... 
 
And they’re a big reason why he was able to turn $37k into $2.7 Million in just 4 years.  
 
And on Wednesday, August 27th @ 2 P.M. ET during his first-ever 10X Lotto Trade Summit... 
 
He's going LIVE to walk you through EXACTLY what he looks for when targeting these lotto trades... 

And he’s even going to place a live trade or two to give you an opportunity to see just how lucrative these trades can be.  
 
CLICK HERE TO RESERVE YOUR FREE SPOT

Strategic Positioning and Competitive Advantage

Medtronic’s robotic Hugo system has completed clinical trials for urologic procedures and is now awaiting FDA approval to launch in the USA.

With less than 5% of applicable procedures carried out by robotics, the launch of Hugo could be a game-changer for surgeons, healthcare providers, and patients. 

The company has a broad portfolio of devices, holds global patents, has a full pipeline of new products in testing, and has a strong history of pioneering medical device firsts.

Its brand reputation, patent portfolio, and innovation pipeline give it a sustained competitive advantage.

At the same time, its history and strong relationships with healthcare providers make it challenging for competitors to gain a foothold. 

Earlier this year, the company announced that it would spin off its diabetes business into a standalone entity, giving it additional strategic strength.

New AI Leaders (Sponsored)

The escalating U.S.-China trade tensions are reshaping the AI landscape.

Companies like Nvidia are facing significant revenue hits with the U.S. imposing new export restrictions on advanced AI chips to China.

This shift opens doors for U.S.-based AI companies poised to fill the gap.

I’ve identified 9 under-the-radar AI stocks with:

  1. Deep AI integration across their core operations

  2. Strong U.S. manufacturing capabilities

  3. Proven revenue growth from AI initiatives

  4. Infrastructure ready to capitalize on policy shifts

Access our FREE report, "Top 9 AI Stocks for This Month" to discover these opportunities before the broader market catches on.

Dividend Profile

MDT currently pays a 71-cent dividend with a solid 3.06% yield, well above the average health care stock yield of 1.58%.

With a manageable forward payout ratio of 46.83%, Medtronic has increased its dividend amount each year for 49 years in succession. 

The current dividend yield sits above the S&P 500 average, giving investors both income security and competitive yield.

This combination of reliability and room for growth makes MDT a strong candidate for those building or maintaining an income-focused portfolio.

Bear Case

While the company has a long track record of dividends, recent revenue trends have been weighed down by pricing pressures, regulatory scrutiny, and intensifying competition in key segments such as diabetes technology, surgical robotics, and cardiac devices.

The planned diabetes spin-off, though potentially value-unlocking, also risks removing one of its higher-growth divisions and leaving a slower-growing, more mature portfolio behind. 

Combined with elevated R&D and capital requirements, as well as currency and global supply chain headwinds, Medtronic’s free cash flow may struggle to keep pace with both dividend growth and innovation demands.

For income investors seeking reliable, above-market dividend expansion, MDT’s defensive profile may be overshadowed by the risk of muted increases and operational volatility.

Final Thoughts

For dividend-focused investors, Medtronic offers a rare blend of stability and growth potential at an attractive entry point.

The company’s decades-long record of dividend payments, backed by $3.6 billion in annual payouts and consistently strong free cash flow, provides income security that few healthcare peers can match.

At the same time, Medtronic is entering a powerful new growth phase, with more than 170 products in clinical trials and recent earnings showing double-digit gains in high-potential areas like cardiac ablation and diabetes technologies.

This combination of reliable dividends and accelerating innovation suggests investors are not just buying income but also positioning for long-term capital appreciation.

With the stock currently trading a little below fair value, the opportunity to lock in an above-market yield while capturing future upside makes MDT a compelling buy for dividend investors right now.

That’s all for today’s edition of the Dividend Brief.

Thanks for reading, and if you have any feedback or dividend stocks you want me to take a look at, just reply to this email!

—Noah Zelvis
DividendBrief.com