We recently published a list of the 15 Best High-Yield Dividend Stocks for 2025 and Beyond. In this article, we are going to take a look at where Medtronic plc (NYSE:MDT) stands against other best high-yield dividend stocks.
Over the years, dividend-paying stocks have become increasingly popular as investors lean toward income-focused investment strategies. Many conservative investors have committed hundreds of billions of dollars across numerous funds based on the belief that companies with a consistent track record of raising dividends tend to deliver the strongest long-term market performance.
According to Ed Clissold of Ned Davis Research, over 80% of companies in the broader market currently pay dividends, and 324 of them have either initiated or increased their payouts over the past year. Interestingly, it was earlier research by Clissold’s firm that helped spark the widespread interest in dividend-growing stocks. That study, based on an older return calculation method that has since been widely replicated, highlighted the strong performance of companies that regularly increased their dividends.
However, as the firm has updated its methods to align with changes in the industry, the findings suggest that while dividend growers have performed well, focusing on high-yielding dividend stocks may be even more rewarding. This yield-based strategy has outperformed dividend growers in both rising and falling markets since 1973. Financial advisers suggest that investors start by examining a stock’s dividend yield, which is determined by dividing the annual dividend by the stock’s current price. This figure indicates the income an investor earns for every dollar put into the stock.
However, high dividend yield tends to come with higher volatility and more frequent portfolio turnover. It isn’t always a positive sign. It can sometimes signal trouble, especially if it’s driven by a drop in the stock’s price. In these situations, there’s a risk that the company may reduce its dividend payments—something that often happens during periods of financial strain. Advisers emphasize the need to go beyond surface-level metrics and examine a company’s core financials to assess its overall stability and strength. Jason Alonzo, managing director at Harbor Capital Advisors, made the following comment about investing in dividend stocks:
“Make sure the company has a strong balance sheet and its prospects for earnings-per-share growth are strong, so the company is well-positioned to maintain dividend payments in the future even if there is a recession.”
While the debate between dividend growth and high yield continues, analysts emphasize that dividend-paying stocks are not all created equal. Stocks that offer a solid yield along with steady dividend increases often reflect strong fundamentals, as they suggest the company can reward shareholders while still investing in future growth. The dividend payout ratio plays a critical role in assessing a company’s flexibility with its dividend policy. Firms that use nearly all of their earnings to cover dividends—or barely earn enough to sustain them—might face challenges, especially when under competitive pressure, due to limited cash flow for operational support.
A surgeon in a modern operating room holding advanced medical devices with a sense of purpose and accuracy.
Our Methodology:
For this article, we used a screener to identify dividend companies with above-average dividend yields. From there, we picked companies that have raised their payouts for at least 10 consecutive years, which shows their long-term growth. Finally, we picked 15 stocks with the highest dividend yields, as of May 9, and ranked them accordingly.
At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Medtronic plc (NYSE:MDT)
Dividend Yield as of May 9: 3.35%
Medtronic plc (NYSE:MDT) is a medical device company that operates across various segments, including medical-surgical, neuroscience, cardiovascular, and diabetes. The stock is generating strong returns this year, surging by over 4% since the start of 2025.
Medtronic plc (NYSE:MDT) has spent years working on its robotic-assisted surgery system, known as Hugo. While the device is already being used in several countries, it has yet to receive regulatory approval in the US—a market with significant revenue potential. To pave the way for US clearance, the company has been conducting tests domestically. In a recent update, Medtronic revealed that it has officially submitted its application to the US Food and Drug Administration (FDA) for the Hugo system. This move follows a successful clinical trial involving 137 patients undergoing urologic procedures, where the device achieved its main safety and effectiveness goals.
In fiscal Q3 2025, Medtronic plc (NYSE:MDT) posted revenue of $8.3 billion, reflecting a 2.5% increase from the same period a year earlier, though it slightly missed Wall Street’s estimate of $8.33 billion. The company reported GAAP diluted earnings per share (EPS) of $1.01, while its adjusted EPS rose 7% year-over-year to $1.39, surpassing analysts’ expectations of $1.35.
Beyond its earnings performance, Medtronic plc (NYSE:MDT) also highlighted a strong cash position, which supports its long-standing dividend program. During the first nine months of the fiscal year, the company generated $4.5 billion in operating cash flow and $3.1 billion in free cash flow. Thanks to its solid financial footing, Medtronic has maintained a 47-year streak of consecutive dividend increases, just three years away from earning the title of Dividend King. It currently pays a quarterly dividend of $0.70 per share and has a dividend yield of 3.35%, as recorded on May 9.
Overall, MDT ranks 14th on our list of the best high yield dividend stocks. While we acknowledge the potential of MDT as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than MDT but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.