Is NYSE:MDT suited for dividend investing?

Last update: Jul 11, 2024

MEDTRONIC PLC (NYSE:MDT) has caught the attention of dividend investors as a stock worth considering. NYSE:MDT excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

ChartMill's Evaluation of Dividend

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:MDT was assigned a score of 7 for dividend:

Compared to an average industry Dividend Yield of 1.79, MDT pays a better dividend. On top of this MDT pays more dividend than 98.93% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, MDT pays a better dividend.
The dividend of MDT is nicely growing with an annual growth rate of 6.78%!
MDT has been paying a dividend for at least 10 years, so it has a reliable track record.
MDT has not decreased their dividend for at least 10 years, which is a reliable track record.

ChartMill's Evaluation of Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:MDT, the assigned 5 for health provides valuable insights:

The Altman-Z score of MDT (2.70) is better than 64.71% of its industry peers.
MDT's Debt to FCF ratio of 4.81 is amongst the best of the industry. MDT outperforms 81.28% of its industry peers.
MDT has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
MDT has a Current Ratio of 2.03. This indicates that MDT is financially healthy and has no problem in meeting its short term obligations.

Evaluating Profitability: NYSE:MDT

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:MDT has earned a 7 out of 10:

MDT's Return On Assets of 4.09% is amongst the best of the industry. MDT outperforms 80.21% of its industry peers.
Looking at the Return On Equity, with a value of 7.32%, MDT belongs to the top of the industry, outperforming 81.28% of the companies in the same industry.
MDT's Return On Invested Capital of 5.69% is amongst the best of the industry. MDT outperforms 80.21% of its industry peers.
MDT has a better Profit Margin (11.36%) than 87.17% of its industry peers.
Looking at the Operating Margin, with a value of 18.91%, MDT belongs to the top of the industry, outperforming 92.51% of the companies in the same industry.
The Gross Margin of MDT (65.73%) is better than 69.52% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Our latest full fundamental report of MDT contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.