Medtronic announces 7.9% dividend increase to $0.68 quarterly in 2022

Medtronic has raised its dividend 45 consecutive years.

Dividend Aristocrat Medtronic PLC (ticker symbol MDT) has announced a dividend increase of 7.9% to 68 cents per share quarterly. The medical technology company will now have raised its dividend 45 consecutive years.

The company today announced that effective May 25, 2022, the Medtronic board of directors approved an increase in Medtronic's cash dividend for the first quarter of fiscal year 2023, raising the quarterly amount to $0.68 per ordinary share. This would translate into an annual amount of $2.72 per ordinary share, an 8% increase from the prior $2.52. Medtronic has a long history of dividend growth, and the company is a constituent of the S&P 500 Dividend Aristocrats index. Today's announcement marks the 45th consecutive year of an increase in the dividend payment. Including today's increase, Medtronic's dividend per share has grown by 48% over the past 5 years and has grown at a 16% compounded annual growth rate over the past 45 years.

Medtronic (see a video about MDT below) has a strong track record of returning capital to its shareholders, including $5.5 billion in fiscal year 2022. The company remains committed to returning a minimum of 50 percent of its free cash flow to shareholders, primarily through dividends, and to a lesser extent, share repurchases. The dividend is payable on July 15, 2022, to shareholders of record at the close of business on June 24, 2022.

"Our substantial dividend increase reflects the confidence of our Board of Directors and executive management in Medtronic's financial strength and future earnings power," said Martha. "We've increased our dividend for the past 45 years and growing our dividend is an important component of the total return we generate for our shareholders."

Last year Medtronic announced a dividend hike of 8.6 percent, marking 44 years in a row of dividend growth. The new annual dividend rate of $2.72 per share yields 2.9% at a stock price of $96.18 for MDT stock. In 2020 MDT announced a 7.4 percent dividend hike.

Medtronic plc, headquartered in Dublin, Ireland, is a global healthcare technology company. MDT technologies and therapies treat 70 health conditions and include cardiac devices, surgical robotics, insulin pumps, surgical tools, patient monitoring systems, and more. Its operating segments include Cardiovascular, Medical Surgical, Neuroscience and Diabetes. Cardiovascular products include pacemakers, insertable cardiac monitors, and cardiac resynchronization therapy devices. Medtronic is a Dividend Aristocrat having increased its dividend more than 25 consecutive years.