Medtronic plc (NYSE:MDT) Announces Dividend Increase – $0.68 Per Share

Medtronic plc (NYSE:MDT – Get Rating) announced a quarterly dividend on Wednesday, May 25th, Zacks reports. Investors of record on Friday, June 24th will be given a dividend of 0.68 per share by the medical technology company on Friday, July 15th. This represents a $2.72 dividend on an annualized basis and a dividend yield of 2.75%. The ex-dividend date is Thursday, June 23rd. This is an increase from Medtronic’s previous quarterly dividend of $0.63.

Medtronic has increased its dividend by an average of 8.0% per year over the last three years and has raised its dividend every year for the last 45 years. Medtronic has a payout ratio of 43.5% meaning its dividend is sufficiently covered by earnings. Research analysts expect Medtronic to earn $5.80 per share next year, which means the company should continue to be able to cover its $2.52 annual dividend with an expected future payout ratio of 43.4%.

MDT opened at $98.90 on Friday. The stock has a 50-day moving average price of $107.19 and a 200-day moving average price of $107.19. Medtronic has a 12-month low of $98.18 and a 12-month high of $135.89. The company has a current ratio of 2.61, a quick ratio of 2.10 and a debt-to-equity ratio of 0.46. The stock has a market capitalization of $132.68 billion, a P/E ratio of 27.25, a PEG ratio of 2.34 and a beta of 0.74.

Medtronic (NYSE:MDT – Get Rating) last released its quarterly earnings results on Thursday, May 26th. The medical technology company reported $1.52 EPS for the quarter, missing analysts’ consensus estimates of $1.56 by ($0.04). Medtronic had a net margin of 15.46% and a return on equity of 14.57%. The business had revenue of $8.09 billion for the quarter, compared to the consensus estimate of $8.43 billion. During the same period in the previous year, the company earned $1.50 EPS. The company’s revenue for the quarter was down 1.2% on a year-over-year basis. On average, equities research analysts predict that Medtronic will post 5.66 EPS for the current year.

MDT has been the subject of several analyst reports. Cowen increased their target price on shares of Medtronic to $125.00 in a report on Monday. Credit Suisse Group reduced their target price on shares of Medtronic from $142.00 to $135.00 and set an “outperform” rating on the stock in a report on Wednesday, February 23rd. Royal Bank of Canada cut their price target on shares of Medtronic from $135.00 to $122.00 in a report on Friday. Needham & Company LLC downgraded shares of Medtronic from a “buy” rating to a “hold” rating in a report on Friday. Finally, Raymond James lowered their price objective on shares of Medtronic from $127.00 to $116.00 and set an “outperform” rating for the company in a research report on Friday, February 18th. Eleven analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Buy” and an average price target of $124.17.

In other news, CFO Karen L. Parkhill sold 682 shares of the company’s stock in a transaction on Friday, March 18th. The shares were sold at an average price of $110.00, for a total value of $75,020.00. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, SVP Carol A. Surface sold 6,000 shares of the stock in a transaction on Friday, March 11th. The stock was sold at an average price of $105.30, for a total transaction of $631,800.00. The disclosure for this sale can be found here. Corporate insiders own 0.47% of the company’s stock.

A number of large investors have recently made changes to their positions in the business. Continuum Advisory LLC bought a new stake in shares of Medtronic during the first quarter worth $324,000. SS&H Financial Advisors Inc. bought a new position in Medtronic in the first quarter valued at about $300,000. Shepherd Financial Partners LLC bought a new position in Medtronic in the first quarter valued at about $280,000. Journey Strategic Wealth LLC acquired a new position in Medtronic in the first quarter valued at about $257,000. Finally, Titleist Asset Management LTD. acquired a new position in Medtronic in the fourth quarter valued at about $254,000. Hedge funds and other institutional investors own 80.23% of the company’s stock.

Medtronic Company Profile (Get Rating)

Medtronic plc develops, manufactures, distributes, and sells device-based medical therapies to hospitals, physicians, clinicians, and patients worldwide. It operates through four segments: Cardiovascular Portfolio, Neuroscience Portfolio, Medical Surgical Portfolio, and Diabetes Operating Unit. The Cardiovascular Portfolio segment offers implantable cardiac pacemakers, cardioverter defibrillators, and cardiac resynchronization therapy devices; AF ablation products; insertable cardiac monitor systems; mechanical circulatory support; TYRX products; and remote monitoring and patient-centered software.

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