Future growth
Up to this point, we’ve looked at Medtronic, Inc. (NYSE:MDT)’s dividend in the past, and we’ve also seen how its stock is being perceived by the market today. However, the most important factor to consider when understanding a dividend’s future is where the company’s cash flow is heading. It’s hard to generate more cash without growing sales, so let’s take a look at what industry analysts are expecting for Medtronic’s revenue growth relative to peers this year.
Up to this point, we’ve looked at Medtronic, Inc. (NYSE:MDT)’s dividend in the past, and we’ve also seen how its stock is being perceived by the market today. However, the most important factor to consider when understanding a dividend’s future is where the company’s cash flow is heading. It’s hard to generate more cash without growing sales, so let’s take a look at what industry analysts are expecting for Medtronic’s revenue growth relative to peers this year.
Foolish bottom line
If you’re looking for a reliable dividend-paying stock, Medtronic, Inc. (NYSE:MDT) is certainly worthy of some consideration. None of the metrics above suggest investors should steer clear of this stock, which is one of the first names that comes to mind when it comes to medical devices. The company’s leading position in the areas of cardiovascular and spine position it well for future growth in the U.S., and its emerging markets division has been growing at strong double-digit clip. Better yet, management is committed to returning half of free cash flow to shareholders in the form of dividends and share repurchases in the future. Bottom line, this dividend is rock solid.
If you’re looking for a reliable dividend-paying stock, Medtronic, Inc. (NYSE:MDT) is certainly worthy of some consideration. None of the metrics above suggest investors should steer clear of this stock, which is one of the first names that comes to mind when it comes to medical devices. The company’s leading position in the areas of cardiovascular and spine position it well for future growth in the U.S., and its emerging markets division has been growing at strong double-digit clip. Better yet, management is committed to returning half of free cash flow to shareholders in the form of dividends and share repurchases in the future. Bottom line, this dividend is rock solid.
The article Does Medtronic Have a Rock-Solid Dividend? originally appeared on Fool.com and is written by Brenton Flynn.
Brenton Flynn has no position in any stocks mentioned. The Motley Fool owns shares of Medtronic.
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