Why MEDTRONIC PLC (NYSE:MDT) provides a good dividend, while having solid fundamentals.

Our stock screener has spotted MEDTRONIC PLC (NYSE:MDT) as a good dividend stock with solid fundamentals. MDT shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Evaluating Dividend: MDT

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. MDT has been assigned a 7 for dividend:

• MDT's Dividend Yield is rather good when compared to the industry average which is at 1.74. MDT pays more dividend than 98.41% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.39, 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 paid a dividend for at least 10 years, which is a reliable track record.
• MDT has not decreased their dividend for at least 10 years, which is a reliable track record.

Deciphering MDT's Health Rating

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. MDT has earned a 5 out of 10:

• An Altman-Z score of 3.01 indicates that MDT is not in any danger for bankruptcy at the moment.
• MDT has a Altman-Z score of 3.01. This is in the better half of the industry: MDT outperforms 66.67% of its industry peers.
• Looking at the Debt to FCF ratio, with a value of 4.87, MDT is in the better half of the industry, outperforming 79.89% of the companies in the same industry.
• MDT has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.

What does the Profitability looks like for MDT

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, MDT has achieved a 8:

• MDT's Return On Assets of 4.73% is amongst the best of the industry. MDT outperforms 83.07% of its industry peers.
• MDT's Return On Equity of 8.63% is amongst the best of the industry. MDT outperforms 84.13% of its industry peers.
• MDT's Return On Invested Capital of 6.09% is amongst the best of the industry. MDT outperforms 80.95% of its industry peers.
• The last Return On Invested Capital (6.09%) for MDT is above the 3 year average (5.95%), which is a sign of increasing profitability.
• MDT has a Profit Margin of 12.83%. This is amongst the best in the industry. MDT outperforms 89.95% of its industry peers.
• MDT has a better Operating Margin (19.47%) than 92.06% of its industry peers.
• With a decent Gross Margin value of 65.59%, MDT is doing good in the industry, outperforming 67.72% of the companies in the same industry.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

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.