15 Best Dividend Stocks To Buy and Hold

6. 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 company reported strong earnings for fiscal Q1 2025, with revenue of $8.4 billion, reflecting a 5.3% increase compared to the same quarter last year. Diabetes-related revenue for the period reached $686 million, showing a 12.4% year-over-year growth. This increase was largely driven by a substantial rise in international revenue, fueled by greater adoption of continuous glucose monitoring (CGM) devices and the continued rollout of the Simplera Sync sensor.

Since the start of 2025, Medtronic plc (NYSE:MDT) has surged by over 13%. Earlier this year, the company received US approval for its Simplera continuous glucose monitoring (CGM) system. In addition, it entered into a partnership with Abbott Laboratories, a prominent player in the CGM market. Under this collaboration, Abbott will supply a CGM system that is compatible with Medtronic’s devices, which Medtronic will exclusively distribute. This partnership underscores the company’s commitment to innovation and enhancing its diabetes division.

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 a reliable investment option because of its strong cash generation. In the first half of its fiscal year, the company generated nearly $2 billion in operating cash flow, up from $1.5 billion in the same period last year. Free cash flow also increased, reaching $1.02 billion, compared to $721 million the previous year. This robust financial performance has allowed Medtronic to raise its dividend for 47 consecutive years, which makes it one of the best dividend stocks on our list. The company offers a quarterly dividend of $0.70 per share and has a dividend yield of 3.08%, as of February 4.

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.