How Many Shares Would It Take to Earn $1,000 a Year From This Future Dividend King?
A recent spinoff could pave the way for greater dividend growth.
Medtronic (MDT) has grown its annual dividend for 49 consecutive years, edging closer to Dividend King status. As of June, the company raised its quarterly dividend to $0.72 per share, resulting in an annualized dividend of $2.88. To earn $1,000 annually in dividends, an investor would need to acquire approximately 348 shares, valuing the stock around $32,792.
Despite recent modest dividend increases, Medtronic's higher-margin businesses and potential spinoff from MiniMed Group present opportunities for future dividend growth. With an 8.1% to 7.1% earnings growth forecast and a reasonable forward payout ratio, Medtronic's stock may offer a compelling entry point for income-focused investors.
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