Is Medtronic's Dividend Safe?
For not just years but decades, (NYSE: MDT) has proven to be a reliable dividend growth stock to own. The medical device maker has been increasing its payout regularly, and with a yield of more than 3%, it pays more than twice what the S 500 averages (1.3%).
But these days, the stock's payout ratio is high, and investors may think twice about how safe the dividend is. A long streak, after all, is no guarantee that future payouts will be secure. Let's take a closer look at whether Medtronic's dividend is safe and if you can comfortably rely on its payout for the foreseeable future.
A stock's payout ratio is a key metric that dividend investors will focus on when assessing if the payout is sustainable. The higher the payout ratio is, the less room the company has to cover the dividend should its earnings deteriorate. That doesn't automatically mean that if it gets to over 100%, a dividend cut is coming. But it can be a warning sign, nonetheless.
Source Fool.com
Medtronic plc Stock
The stock is one of the favorites of our community with 24 Buy predictions and 1 Sell predictions.
With a target price of 89 € there is a slightly positive potential of 5.81% for Medtronic plc compared to the current price of 84.11 €.
