Wall Street Isn't Talking About High-Yield Medtronic Stock -- Here's Why It Should Be

Medtronic (NYSE: MDT) is kind of a boring business. Sure, it is one of the world's largest medical device makers, but its diversified portfolio tends to mask the exciting developments taking place in the business. But management has managed to turn this industry leader in a more attractive direction. Here's why Wall Street should be talking a lot more about Medtronic.

To be fair, Medtronic's size works against it. In fact, after decades of success, the company became bogged down by excessive bureaucracy and too many business lines. It has been around a long time, noting its incredible 48-year streak of annual dividend increases (two away from Dividend King status ), so this isn't really a shocking development. But it does lead investors to ignore a stock, as they focus on more exciting, focused, and smaller businesses, like surgical robotics pioneer Intuitive Surgical (NASDAQ: ISRG).

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

What's notable is that Medtronic has made strategic shifts to regain its growth mojo. That's included exiting less desirable businesses and investing in new technology. For example, it spun off its diabetes business, which was growing quickly but wasn't particularly profitable. And it recently launched its Hugo surgical robot in the U.S. market, taking on Intuitive Surgical, a company that gets a lot more attention on Wall Street. While Hugo is just one of many new products that Medtronic has in the works, it highlights Medtronic's ability to develop cutting-edge technology in the medical device space .

In fact, the changes the company made allowed it to report its highest annual revenue growth in a decade in fiscal 2026. In the first quarter of fiscal 2027, the company's revenues jumped 13.7%, with earnings coming in above guidance. In fact, management was so confident about the future that it increased its full-year guidance for fiscal 2027 after just one quarter.

That's not to suggest that Medtronic will suddenly become a growth stock. But the tide appears to have turned. It is no longer a business working through a turnaround; it looks like one that has passed an important inflection point. Now add in a well-above-market dividend yield, and even conservative dividend investors should probably give this medical device giant a second look.