5 Dividend Stocks to Buy According to Bryan Hinmon’s Motley Fool Asset Management

3. Medtronic plc (NYSE:MDT)

Motley Fool Asset Management’s Stake Value: $21,349,000
Dividend Yield as of June 17: 3.08%
Number of Hedge Fund Holders: 54

Medtronic plc (NYSE:MDT) is an Ireland-based medical device company that is known widely for its therapies and cardiac devices. In fiscal Q4 2022, the company missed estimates on various accounts but expects its organic revenue growth in the range of 4% to 5% in FY23. In 2022, the company saw a 5% year-over-year growth in its organic revenue.

In May 2022, Medtronic plc (NYSE:MDT) announced an 8% hike in its quarterly dividend, which marked the company’s 45^th consecutive year of dividend growth. The company’s quarterly payout stands at $0.68 per share, with a dividend yield of 3.08%, as of June 17. In May, Raymond James noted the negative impact of supply chain issues on Medtronic plc (NYSE:MDT)’s revenue and lowered its price target on the stock to $109, but kept an Outperform rating on the shares.

According to Insider Monkey’s Q1 2022 database, 54 hedge funds owned stakes in Medtronic plc (NYSE:MDT), falling from 55 in the previous quarter. The combined value of these stakes is roughly $2 billion.

Motley Fool renewed its position in Medtronic plc (NYSE:MDT) during the second quarter of 2021, after dumping off its entire stake in the company twice since 2015. At the end of Q1 2022, the hedge fund owned 192,422 MDT shares, valued at over $21.3 million. The company made up 1.56% of Bryan Hinmon’s portfolio.

Polen Capital mentioned Medtronic plc (NYSE:MDT) in its Q1 2022 investor letter. Here is what the firm has to say:

“Ireland-based Medtronic is a leading health care company focused on supplying many important life-saving devices like pacemakers, defibrillators, and insulin pumps. This is another company with attractive pricing power and a business model that can hold up well during inflationary periods. Medtronic has increased market share across almost 70% of its portfolio since the start of the pandemic, which is a higher percentage than even before the pandemic. With growth-oriented companies falling out of favor over the quarter, the stock’s relatively discounted valuation (at approximately 19x earnings) also bolstered its performance.”