Here are six key notes:
1. Medtronic has raised its dividend over the past several years annually, increasing 25 percent to $0.38 per share for fiscal year 2016. This is the 38th consecutive year the dividend has increased, and the compound annual growth rate has tripled over the past eight years.
2. The current dividend yield is 2 percent, and there could be a continuation of increased returns. The stock has potential for price appreciation, according to the report.
3. Medtronic has a Momentum Style Score of ‘A’ so it’s a “favorable time for new investors” for the stock and there are opportunities to optimize its positive price momentum.
4. Medtronic’s acquisition of Covidien finalized earlier this year and the combined company is focusing on growth strategies in therapy innovation, globalization and economic value. These three areas aim to improve outcomes with technology and capitalize on the growing demand for access to healthcare in developing countries as well as improving efficiency for value-based healthcare.
5. The company expects revenue growth at 4 percent to 6 percent for the combined business in the fiscal year 2016. Zacks has a “Hold” rating on the company.
6. There are big plans for new products across all segments which could boost stock prices. “The company promises to increasingly accumulate profits at the combined level and move toward a dividend that is entirely treated as a return of its earnings. This should lead to a more steady return for the investors,” according to the report.
More articles on orthopedic devices:
25 spine devices receive FDA 510(k) clearance in June
St. Jude Medical receives FDA approval for wireless spinal cord stimulation
J&J Orthopedics sales drop 5.6% in Q2: 5 key notes
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