Even great companies go through hard times. In fact, very often, what makes a company great is its ability to navigate through difficulties. Medtronic’s (MDT 1.06%) 48 consecutive annual dividend increases are clear proof that it can deal with adversity, putting the stock just two years away from Dividend King status. Here’s why dividend investors, growth investors, and value investors may want to buy the stock right now.
Medtronic is an industry giant
Medtronic is one of the largest players in the medical device sector. Its current troubles are really related to normal corporate inefficiencies that crop up over time. Costs rose, growth slowed down, and decision-making became more cumbersome. The company is working on all of those issues, even as it continues to innovate.
Image source: Getty Images.
Still, the stock is down 40% from its 2021 high. The price-to-sales, price-to-earnings, and price-to-book ratios are all below their five-year averages thanks to that decline. And the dividend yield is up to a historically high 3.7%. Given the stock’s incredible dividend streak, which is still going strong, you can see where value investors and dividend investors would each want to jump aboard. If history is any guide, management will eventually turn things around.
Growth investors should like Medtronic, too
Growth is a big story here, as well, because Medtronic is ramping up sales of its Hugo surgical robot. The largest competitor in the surgical robotics space is fellow medical device maker Intuitive Surgical (ISRG 1.66%). At the end of the first quarter of 2026, there were 11,395 da Vinci surgical robots installed worldwide, up 12% year over year. The number of surgeries using the da Vinci system rose 17%. There is clearly a material demand for this technology.
Given Medtronic’s deep industry connections, it is reasonable to expect substantial success for its Hugo surgical robot. And that, along with other new products it is introducing, will help push the company’s growth into a higher gear. This is where valuation comes into play again. Intuitive Surgical’s P/E ratio is 52x, more than twice Medtronic’s 21x. If the market gives Medtronic only a portion of the credit Intuitive Surgical receives, there could be an upside opportunity beyond returning to Medtronic’s historical valuation levels.
Today’s Change
(-1.06%) $-0.82
Current Price
$76.15
Key Data Points
Market Cap
$98B
Day’s Range
$75.85 – $77.38
52wk Range
$74.40 – $106.33
Volume
9.1M
Avg Vol
8.8M
Gross Margin
59.59%
Dividend Yield
3.73%
Given Medtronic’s more diversified business model, it will likely never have the same growth opportunity as Intuitive Surgical. However, more conservative growth investors may actually find that appealing, noting that Intuitive Surgical tends to be a very volatile stock.
Medtronic is getting closer to the upturn
Essentially, Medtronic has been in turnaround mode for several years as it has worked to streamline its business. That process is largely complete, and a return to growth could be on the horizon, at least partly driven by its Hugo surgical robot. If you are an investor who thinks in decades, you might want to dig in. That’s equally true for value investors, dividend lovers, and growth investors.
Reuben Gregg Brewer has positions in Medtronic. The Motley Fool has positions in and recommends Intuitive Surgical and Medtronic. The Motley Fool recommends the following options: long January 2028 $520 calls on Intuitive Surgical and short January 2028 $530 calls on Intuitive Surgical. The Motley Fool has a disclosure policy.
