Is MDT a good stock to buy? We came across a bullish thesis on Medtronic plc on TheDividendPrince’s Substack. In this article, we will summarize the bulls’ thesis on MDT. Medtronic plc’s share was trading at $80.98 as of June 26th. MDT’s trailing and forward P/E were 21.71 and 13.59 respectively according to Yahoo Finance.
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Medtronic plc develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients in the United States, Ireland, and internationally. MDT is positioned as a Dividend Aristocrat with more than 25 consecutive years of dividend increases, reflecting a durable shareholder return framework supported by resilient cash flows and diversified healthcare exposure.
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The company offers a 3.54 percent dividend yield with a $2.84 annual dividend, underpinned by a Dividend Safety Rating of 75 out of 100, Safe, supported by strong fundamentals including a 2.5x current ratio, 63.8 percent gross margins, and a proven operating record.
While its score is slightly lower relative to peers due to a higher debt load associated with its acquisition-driven strategy, Medtronic maintains a narrow economic moat driven by deep physician relationships, extensive intellectual property, and validated product portfolios. The bullish thesis is anchored in its growth drivers, particularly pulsed field ablation for atrial fibrillation and new hypertension therapies, which open large addressable markets and support sustained revenue expansion.
Additionally, its pipeline across surgical robotics and cardiovascular innovation enhances long-term visibility. Although competitive pressure from Intuitive Surgical’s da Vinci platform and reimbursement constraints from Medicare represent structural headwinds, Medtronic’s scale, installed base, and innovation pipeline provide offsets. At $80 per share, the stock trades at a 27 percent discount to Morningstar’s $112 fair value estimate, implying significant upside potential.
This valuation disconnect presents an attractive entry point for long-term investors seeking income capital appreciation. Overall, Medtronic represents a defensive yet growing healthcare compounder with durable dividends, improving product cycles, and meaningful rerating potential as new therapies scale and valuation normalizes over time.
Previously, we covered a bullish thesis on Medtronic plc (MDT) by Investing Intel’s Substack in May 2025, which highlighted strong FY2025 growth, cardiovascular and diabetes momentum, and a planned diabetes spin-off to unlock value. MDT’s stock price has been flat since our coverage. TheDividendPrince shares a similar view but emphasizes dividend durability, moat strength, and pipeline-led long-term compounding despite competitive and reimbursement headwinds.
Medtronic plc is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held MDT at the end of the first quarter which was 63 in the previous quarter. While we acknowledge the risk and potential of MDT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MDT and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
