Balancing Dividends and Fundamentals: The Case of NYSE:MDT.

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.

How We Gauge Dividend for NYSE:MDT

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 6 for dividend:

• Compared to an average industry Dividend Yield of 1.68, MDT pays a better dividend. On top of this MDT pays more dividend than 98.39% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.19, MDT pays a bit more dividend than the S&P500 average.
• On average, the dividend of MDT grows each year by 6.78%, which is quite nice.
• 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.

A Closer Look at Health for NYSE:MDT

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:MDT has achieved a 5 out of 10:

• Looking at the Altman-Z score, with a value of 2.81, MDT is in the better half of the industry, outperforming 65.59% of the companies in the same industry.
• Looking at the Debt to FCF ratio, with a value of 5.42, MDT is in the better half of the industry, outperforming 78.49% of the companies in the same industry.
• A Current Ratio of 2.13 indicates that MDT has no problem at all paying its short term obligations.

Analyzing Profitability Metrics

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:MDT, the assigned 7 is noteworthy for profitability:

• MDT has a better Return On Assets (4.38%) than 81.72% of its industry peers.
• MDT has a Return On Equity of 8.19%. This is amongst the best in the industry. MDT outperforms 81.72% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 5.69%, MDT belongs to the top of the industry, outperforming 80.11% of the companies in the same industry.
• Looking at the Profit Margin, with a value of 12.05%, MDT belongs to the top of the industry, outperforming 89.25% of the companies in the same industry.
• The Operating Margin of MDT (18.85%) is better than 91.94% of its industry peers.
• The Gross Margin of MDT (65.53%) is better than 68.28% of its industry peers.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.