Medtronic raises dividend for 40th year

Medtronic plc (MDT) will raise its dividend by 7 percent.

The Dividend Aristocrat will increase its quarterly dividend to $0.46 per share, marking 40 years of consecutive dividend increases.

This would translate into an annual amount of $1.84 per ordinary share, or a dividend per share payout ratio of 40 percent of prior fiscal year non-GAAP diluted earnings per share. Friday's announcement marks the 40th consecutive year of an increase in the dividend payment for Medtronic, a constituent of the S&P 500 Dividend Aristocrats index. Including this increase, Medtronic's dividend per share has nearly quadrupled over the past decade and has grown at a 17 percent compounded annual growth rate over the past 40 years.

"Today's increase in our dividend demonstrates the confidence of the board and our management team in the strength of the company's cash flow generation and the ability to generate value for our shareholders," said Omar Ishrak, Medtronic chairman and chief executive officer this Friday. "We are committed to returning a minimum of 50 percent of our free cash flow each year through dividends and share repurchases, balancing the return of cash to our shareholders with disciplined reinvestment in our business to drive sustainable growth."

The dividend is payable on July 26, 2017, to shareholders of record at the close of business on July 7, 2017.

Medtronic stock has gained 25% year-to-date, with the stock closing near an all time high of $89.20 this Friday. Currently the dividend yield is 2.1 percent.

Out of 25 analysts tracking Medtronic not one rates the stock a 'sell', with 14 'buy' ratings and 11 'hold' recommendations.

Medtronic Public Limited Company (Medtronic) is a medical technology and services company. The Company develops, manufactures and markets its medical devices and technologies to hospitals, physicians, clinicians and patients in approximately 160 countries. The Company operates in four segments: Cardiac and Vascular Group, Minimally Invasive Technologies Group, Restorative Therapies Group and Diabetes Group. Find out more about the company's products here.

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