This Stock Is Knocking on the Door of the Dividend Kings -- and Wall Street Thinks It Has Room to Run
Medtronic could finally be on the cusp of a long-awaited turnaround.
Overview
Medtronic (NYSE: MDT), one of the world's largest medical device makers, was once a reliable blue chip dividend stock. But over the past five years, its stock has declined 33%. Even after including reinvested dividends, it delivered a negative total return of 22%.
Medtronic lost its luster as it struggled with higher costs, supply chain bottlenecks, quality control issues, and a failure to keep up with Intuitive Surgical (NASDAQ: ISRG) in the surgical robotics market. The rise of GLP-1 weight loss drugs, which would presumably reduce the need for surgeries and implants, has also cast a shadow over the broader medical device industry. Moreover, the spin-off of its diabetes unit as MiniMed (NASDAQ: MMED) in March will temporarily dilute its near-term earnings and inject uncertainty into its medium-term outlook.
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Originally published at www.fool.com.