Medtronic’s share price dropped when the company missed revenue estimates.
Recent acquisitions and medical innovations put Medtronic in a strong position.
Over the next five years, the company is predicting growth of 7.8% per year.
Payouts will increase in 2017.
Dividend investors should jump into Medtronic (NYSE:MDT) now. Today’s share price is $71.25, reflecting an overreaction to Medtronic’s third quarter earnings report in which the company exceeded earnings per share forecasts, but failed to meet revenue expectations, missing by $160 million.
Despite the revenue glitch, which the company ascribed to production holdups, Medtronic’s health is better than ever. Over the previous five year period, the company’s yearly revenue increased from $16 billion in 2011 to $28 billion in 2015 and should continue to increase over the next five years for a number of reasons.