From Dividend Prince to King: Why Medtronic Could Crowned Soon

The Path to Royalty

Medtronic stands at a pivotal moment in its dividend history. With 48 consecutive years of dividend increases already under its belt, the healthcare technology giant is just two years away from achieving “Dividend King” status—a distinction held by only 56 companies worldwide. This exclusive club recognizes companies that have raised dividends annually for 50+ years, and Medtronic is primed to join their ranks.

Financial Strength That Supports Growth

What makes this achievement credible is Medtronic’s robust financial foundation. The company’s latest dividend increase, announced in May, raised its quarterly payment to $0.71 per share ($2.84 annualized), extending its streak another year. Today, its dividend yield sits at 2.9%, more than double the S&P 500’s 1.2%.

The numbers tell a compelling story. In fiscal 2025, Medtronic generated $5.2 billion in free cash flow—plenty of cushion against its $3.6 billion annual dividend obligations. Even after investing heavily in R&D ($2.7 billion) and capital expenditures ($1.9 billion), the company still had significant firepower left.

The balance sheet reflects this strength. With $2.2 billion in cash, $6.7 billion in investments, and manageable $25.6 billion long-term debt, Medtronic maintains a solid A/A3 bond rating. This financial flexibility allowed the company to repurchase $3.2 billion in shares last year while simultaneously raising its per-share dividend.

Momentum Building for Tomorrow

Medtronic isn’t resting on past achievements. Recent second-quarter results for fiscal 2026 show the company firing on all cylinders: revenue climbed 6.6% while earnings per share jumped 8%, prompting management to raise full-year guidance. The company now expects 5.5% revenue growth and 4.5% EPS growth for the fiscal year.

The business strategy reinforces this growth trajectory. The company is ramping up R&D investments to fuel innovation and expanding its sales and marketing efforts around high-demand products. Meanwhile, management is sharpening its portfolio through strategic moves—including plans to separate its diabetes business through a potential IPO and subsequent split-off. This disciplined approach should ultimately enhance margins and earnings per share, with proceeds redirected toward additional share buybacks.

A newly formed growth committee is overseeing acquisitions, R&D allocations, and divestitures, signaling management’s commitment to accelerating expansion in coming years.

The Road to the Crown

For dividend investors tracking king stocks, Medtronic represents something rare: a company with genuine momentum entering its final sprint to monarchy status. It possesses the financial horsepower to sustain dividend increases, the business growth to justify those increases, and the strategic initiatives to drive future value.

At 48 consecutive years of dividend growth, Medtronic isn’t just celebrating the past—it’s building the foundation for decades of future increases. That’s the mark of a true future king.