Medtronic (MDT) is one of those companies most retail investors know little about. The company’s customers are primarily hospitals, doctor’s offices, and healthcare facilities. The company has its headquarters in Ireland, making it even more obscure. However, Medtronic is the largest pure-play global manufacturer of medical devices. In addition, the company is a Dividend Champion and Dividend Aristocrat with 44 years of consecutive yearly increases. The stock has been pressured lately and is down about (-10%) from its all-time high. However, the dividend has grown at a double-digit rate in those 44 years. The dividend is also safe. It may be time to add shares, and I view Medtronic as a long-term buy.
Overview Of Medtronic – Time To Add Shares
Medtronic was founded in 1949 in Minneapolis, MN. Today, the company has its headquarters in Dublin, Ireland, a move that took effect during the acquisition of Covidien in 2015. Covidien had already executed a tax inversion. Medtronic is one of the largest medical device companies in the world and operates globally in 140 countries. The company has four business segments: Cardiac & Vascular Group (~36% of total revenue), Minimally Invasive Therapies Group (~29% of total revenue), Restorative Therapies Group (~27% of total revenue), and Diabetes Group (~8% of total revenue). Business operating units include Cardiac Rhythm & Heart Failure; Structural Heart & Aortic; Coronary & Peripheral Vascular; Surgical Innovations; Respiratory, Gastrointestinal & Renal; Cranial & Spinal Technologies; Specialty Therapies; Neuromodulation; and Diabetes. Total revenue was $30,117 million in the fiscal year 2021 and $31,597 million in the LTM.
Medtronic Revenue Growth And Margins
Medtronic is a growth engine. The company grows organically and through bolt-on acquisitions. Revenue growth supports earnings growth that in turn supports dividend growth.
In the past decade, revenue has grown from $16,184 million in fiscal 2012 to $30,117 million in fiscal 2021. Medtronic acquired Covidien in 2015, a substantial acquisition of $42.9 billion that boosted revenue in 2015 by nearly $8 billion…
Disclosure: Long MDT
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Prakash Kolli is the founder of the Dividend Power site. He is a self-taught investor, analyst, and writer on dividend growth stocks and financial independence. His writings can be found on Seeking Alpha, InvestorPlace, Business Insider, Nasdaq, TalkMarkets, ValueWalk, The Money Show, Forbes, Yahoo Finance, and leading financial sites. In addition, he is part of the Portfolio Insight and Sure Dividend teams. He was recently in the top 1.0% and 100 (73 out of over 13,450) financial bloggers, as tracked by TipRanks (an independent analyst tracking site) for his articles on Seeking Alpha.
