Medtronic Declares Fresh Dividend; Yield Is 2.3%

Medtronic's (NYSE: MDT) next quarterly dividend will be $0.58 per share, the medical device maker's board of directors has declared. This is to be paid on Oct. 16 to stockholders of record as of Sept. 25.

The amount matches the previous payout, which was dispensed in July. Previous to that, Medtronic had paid $0.54 per share. The company is a Dividend Aristocrat, which means it is one of the few S&P 500 index components that has raised its distribution at least once annually for a minimum of 25 years in a row. Since the beginning of 2010, Medtronic's dividend has risen steadily, from just under $0.21 per share to the current level.

At the current share price, the payout yields 2.3%. Stethoscope atop scattered $100 bills and pennies.

Image source: Getty Images.

Like other companies in the medical device segment, Medtronic has struggled during the coronavirus pandemic. This is largely due to the fact that, in the face of the outbreak, many elective surgeries have been postponed or canceled given the general healthcare system's pivot toward fighting the corornavirus. That steep drop in elective surgeries has softened demand for many types of devices.

In its most recently reported quarter, Medtronic suffered a 26% year-over-year decline in revenue (to just under $6.0 billion), with generally accepted accounting principles (GAAP) earnings falling 46% to $646 million. Both results were beneath the average analyst estimates.

On Monday, however, investors seemed cheered by the news of yet another dividend. Medtronic's stock rose by almost 1.8%, beating the frothy gains of the top equity indexes on the day.

The company is scheduled to release its first quarter of fiscal 2021 results Tuesday morning before market open.

10 stocks we like better than Medtronic
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and Medtronic wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks


*Stock Advisor returns as of August 1, 2020


Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Latest Markets Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More