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Medtronic (MDT) Dividend Stock Analysis
Medtronic Dividend
Medtronic (MDT) has paid a dividend every year since 1977 and increased it for 47 consecutive years; qualifying the company as a Dividend Aristocrat and Dividend Champion.
Current Dividend Annualized: $2.80
Medtronic (MDT) Intrinsic Value – Margin of Safety Analysis
(update December 2024)
Normalized Diluted Earnings Per Share(TTM): $3.27
Free Cash Flow Per Share (TTM): $4.20
Cash Flow From Operations Per Share (TTM); $5.49
Estimated Intrinsic Value: $81
Target Buy Price Based on Required Margin of Safety = $67
(Required Margin of Safety Based On Risk Stability Grade:
A = 0%, B = 20%, C = 40%, D = 60%, F = 80%)
Target SELL Price Based on Estimated Intrinsic Value = $101
(Allow Overvaluation Adjusted by Risk Stability Grade:
A = 40%, B = 25%, C = 15%, D = 5%, F = 0%)
Risk / Stability Grade: B
A grade indicates a quality company with a strong balance sheet, high earnings quality, and a positive business environment. These stocks require the slimmest margin of safety within the stock universe.
B grade indicates a company with a good balance sheet, good earning quality, and a stable business environment. The margin of safety required should be greater than stocks with an A grade but less than the average stock.
C grade indicates a company with a sufficient balance sheet, at least average earnings quality, and a reasonably stable business environment. The margin of safety required is greater than A & B stocks, but less than D & F stocks.
D grade indicates a company in good standing but has issues that could affect its stability and long term risks. D rated stocks should require a large margin of safety when purchased.
F grade indicates a company with significant issues that are currently affecting its stability and long term risks. Require an extremely large margin of safety for F rated stocks when purchased.
Financial Risk Grade: B
A grade indicates an extremely low probability of a dividend cut. This rating is reserved for companies with strong balance sheets and/or excellent dividend histories.
B grade indicates a very low probability for a dividend cut.
C grade indicates a low probability for a dividend cut and/or average safety risk.
D grade indicates there are issues that should be considered concerning future dividend payments.
F grade indicates serious dividend safety risks. Investors should complete comprehensive due diligence before investing.
Business Quality Grade: C
A grade indicates earnings quality is high or far above average.
B grade indicates earnings quality is good and/or above average.
C grade indicates earnings quality is acceptable or average.
D grade indicates earnings quality is poor and requires thoughtful due diligence.
F grade indicates the quality of the earnings is poor or far below average requiring serious due diligence.
Earnings Report: 10/31/24
AAAMP Portfolios Position Disclosures:
Treasure Trove Dividend (TTD) – None
Global Dividend Value (GDV) – None
Dividend Growth & Income (DGI) – None
Global Value (GV) – None
Global Value Aggressive (GVA) – None
Global Conservative Income (GCI) – None
Global High Income (GHI) – None
Company Description
Sector: Healthcare
Industry: Medical Devices
Company Overview:
Medtronic PLC (MDT) is a global leader in medical devices, offering a wide range of products and therapies to treat various health conditions. The company operates in multiple segments, including cardiovascular, diabetes, neurological, and surgical technologies. Medtronic’s brands include well-known names such as SynchroMed, Covidien, and Sofamor Danek. With a presence in over 150 countries, Medtronic is committed to improving patient outcomes through innovative medical solutions.
Company Strengths:
Medtronic’s strengths include its broad and diversified product portfolio, strong research and development capabilities, and leadership in several high-growth medical device markets. The company benefits from its global reach, allowing it to serve a wide range of healthcare providers and patients. Medtronic’s commitment to innovation and acquiring complementary technologies strengthens its competitive advantage. Its solid financial performance and reputation for high-quality products enhance brand loyalty and market leadership.
Company Challenges:
Medtronic faces challenges such as regulatory scrutiny and the complexity of navigating healthcare systems in various countries. The company must also contend with intense competition from other large medical device manufacturers and emerging players. Additionally, economic uncertainties and healthcare cost pressures can impact demand for its products. As a global company, Medtronic is exposed to currency fluctuations and geopolitical risks that can affect its financial results and international operations.
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Disclaimer:
While Arbor Investment Planner has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability, or completeness of third-party information presented herein. The sole purpose of this analysis is information. Nothing presented herein is, or is intended to constitute investment advice. Consult your financial advisor before making investment decisions.