Medtronic PLC (NYSE:MDT) to Issue Quarterly Dividend of $0.71

Key Points

• Medtronic PLC announced a quarterly dividend of $0.71 per share, which will be paid on October 17 to shareholders of record as of September 26, representing an annualized yield of 3.1%.
• The company has a payout ratio of 47.2%, indicating its dividend is well-supported by earnings, with expected earnings of $5.83 per share next year.
• Analysts have updated their price targets for Medtronic, with most ratings being positive, resulting in an average target price of $98.19 for MDT stock.

Medtronic PLC (NYSE:MDT - Get Free Report) declared a quarterly dividend on Friday, August 15th, Wall Street Journal reports. Shareholders of record on Friday, September 26th will be given a dividend of 0.71 per share by the medical technology company on Friday, October 17th. This represents a c) annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend is Friday, September 26th.

Medtronic has a payout ratio of 47.2% indicating that its dividend is sufficiently covered by earnings. Analysts expect Medtronic to earn $5.83 per share next year, which means the company should continue to be able to cover its $2.84 annual dividend with an expected future payout ratio of 48.7%.

Medtronic Trading Up 1.1%

MDT stock traded up $1.00 during midday trading on Friday, reaching $92.98. The stock had a trading volume of 6,439,126 shares, compared to its average volume of 7,625,454. The company has a quick ratio of 1.42, a current ratio of 1.85 and a debt-to-equity ratio of 0.53. Medtronic has a twelve month low of $79.29 and a twelve month high of $96.25. The firm has a market cap of $119.18 billion, a price-to-earnings ratio of 25.69, a PEG ratio of 2.41 and a beta of 0.80. The business has a fifty day simple moving average of $89.21 and a two-hundred day simple moving average of $88.00.

Medtronic (NYSE:MDT - Get Free Report) last announced its quarterly earnings results on Wednesday, May 21st. The medical technology company reported $1.62 EPS for the quarter, beating analysts' consensus estimates of $1.58 by $0.04. Medtronic had a return on equity of 14.54% and a net margin of 13.90%. The company had revenue of $8.93 billion during the quarter, compared to analysts' expectations of $8.81 billion. During the same period in the prior year, the business posted $1.46 EPS. Medtronic's revenue was up 3.9% on a year-over-year basis. As a group, research analysts expect that Medtronic will post 5.46 EPS for the current fiscal year.

Analysts Set New Price Targets

MDT has been the topic of a number of recent research reports. Evercore ISI lifted their target price on Medtronic from $103.00 to $106.00 and gave the company an "outperform" rating in a research report on Tuesday, July 8th. Wolfe Research raised shares of Medtronic from an "underperform" rating to a "peer perform" rating in a research report on Monday, June 30th. Morgan Stanley reiterated an "overweight" rating and issued a $107.00 price target (up from $98.00) on shares of Medtronic in a research note on Tuesday, July 15th. Royal Bank Of Canada reduced their price objective on shares of Medtronic from $105.00 to $101.00 and set an "outperform" rating for the company in a research note on Thursday, May 22nd. Finally, William Blair raised Medtronic to a "hold" rating in a research report on Friday, July 11th. Twelve research analysts have rated the stock with a hold rating, nine have given a buy rating and two have given a strong buy rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $98.19.

Medtronic Company Profile

Medtronic plc develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients worldwide. Its Cardiovascular Portfolio segment offers implantable cardiac pacemakers, cardioverter defibrillators, and cardiac resynchronization therapy devices; cardiac ablation products; insertable cardiac monitor systems; TYRX products; and remote monitoring and patient-centered software.

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