10 Best Halal Dividend Stocks To Invest In

5. Medtronic plc (NYSE:MDT)

Number of Hedge Fund Holders: 60

Medtronic plc (NYSE:MDT) is a multinational medical device company that has a diversified business, offering a wide range of devices across four key sectors: medical-surgical, neuroscience, cardiovascular, and diabetes. The stock has surged by over 9.5% since the start of 2025, grabbing investors’ attention. Earlier this year, the company received US approval for its Simplera continuous glucose monitoring (CGM) system. In addition, it formed a partnership with Abbott Laboratories, a leading name in the CGM market. As part of this collaboration, Abbott will provide a CGM system that is compatible with Medtronic’s devices, which Medtronic will distribute exclusively. This partnership highlights the company’s focus on innovation and strengthening its diabetes division.

Medtronic plc (NYSE:MDT) delivered solid earnings in fiscal Q1 2025, reporting $8.4 billion in revenue, a 5.3% increase compared to the same period last year. Diabetes revenue for the quarter reached $686 million, marking a 12.4% year-over-year growth. This growth was driven by a significant rise in international revenue, boosted by increased adoption of CGM devices and the ongoing launch of the Simplera Sync sensor.

Matrix Asset Advisors made the following comment about MDT in its Q3 2024 investor letter:

“In Q3, we added to two Healthcare positions, Medtronic plc (NYSE:MDT) and Becton Dickinson (BD). Both companies are very attractive in our valuation analysis. We started the LCV position in MDT in the second quarter and added to it as more cash became available. The company’s business results have improved this year as the number of medical procedures normalized from their decline during the pandemic. “

Medtronic plc (NYSE:MDT) is one of the best halal dividend stocks on our list because of the company’s solid cash position. In the first half of its fiscal year, the company generated close to $2 billion in operating cash flow, an increase from $1.5 billion during the same period last year. Free cash flow also grew, reaching $1.02 billion compared to $721 million in the previous year. This strong financial position has enabled Medtronic to consistently increase its dividend for 47 consecutive years. Currently, it pays a quarterly dividend of $0.70 per share and has a dividend yield of 3.19%, as of January 22.

The number of hedge funds tracked by Insider Monkey owning stakes in Medtronic plc (NYSE:MDT) grew to 60 in Q3 2024, from 52 in the previous quarter. These stakes are collectively valued at over $4.2 billion.