Dividend Stock Portfolio For Income: Top 10 Stocks to Buy

8. Medtronic plc (NYSE:MDT)

Number of Hedge Fund Holders: 67

Medtronic plc (NYSE:MDT) ranks eighth on our list of the best stocks for a dividend stock portfolio. The multinational medical device company has a diversified business, offering a wide range of devices across four key sectors: medical-surgical, neuroscience, cardiovascular, and diabetes.

In fiscal Q3 2025, Medtronic plc (NYSE:MDT) posted revenue of $8.3 billion for the third quarter, reflecting a 2.5% increase from the same period last year. However, this figure fell slightly short of Wall Street’s consensus estimate of $8.33 billion. The company reported diluted earnings per share (EPS) of $1.01 under generally accepted accounting principles (GAAP). Meanwhile, adjusted EPS rose 7% year over year to $1.39, surpassing analysts’ expectations of $1.35.

Approximately 50% of Medtronic plc (NYSE:MDT)’s revenue is generated in the US, which remains the most profitable healthcare market globally. The remainder comes from international operations, including emerging markets that have the potential for faster growth in the years ahead. The company’s main revenue streams come from its cardiovascular, neuroscience, and surgical divisions, while its diabetes segment contributes a smaller portion. This diversified business model provides stability. Notably, when numerous medical procedures were postponed or canceled during the early years of the pandemic, it marked the first time since the mid-1980s that Medtronic’s trailing 12-month sales declined by 10%.

Medtronic plc (NYSE:MDT) showed a strong cash position in its earnings report. In the first nine months of its fiscal year, the company generated an operating cash flow of over $4.5 billion, and its free cash flow came in at $3.1 billion. Due to this strong cash position, the company was able to raise its dividend payouts for 47 years straight. The company offers a quarterly dividend of $0.70 per share and has a dividend yield of 3.09%, as of February 25.