This Ultra-Safe Dividend Stock Looks Like a Solid Buy After a 9% Boost
Dividend investors rarely argue with a healthy payout increase -- as long as the company can afford that increase. Nobody wants to face the potential of a painful cut further down the line.
Recently, medical devices company Medtronic (NYSE: MDT) authorized an increase in its quarterly dividend from $0.58 per share to $0.63. An 8.6% increase to a forward yield of 2% is nothing to sneeze at, especially compared with the S&P 500's 1.3% average yield, and it may signal that the company is fundamentally well and management is looking to return more capital to shareholders to drive returns.
That said, the new dividend obligation could be an unsupportable amount, especially if the fundamentals are weakening. Let's take a look at whether Medtronic's dividend remains safe.
Source Fool.com
