How Medtronic, Inc. (MDT) Overcame Obamacare to Hit Multi-Year Highs

Still, Medtronic hasn’t stopped innovating. Partnering with Bayer, Medtronic has helped type-1 diabetes sufferers by working to link up its insulin pumps to Bayer’s glucose-monitoring devices, ensuring proper dosages without chance for human error. At the end of May, Medtronic won FDA approval for its Endurant II Aorto-Uni-Iliac Stent Graft System, which helps treat potentially fatal abdominal aortic aneurysms. Advances like these are just examples of Medtronic, Inc. (NYSE:MDT)’s expertise in the space in tackling new medical problems.

Medtronic Dividend data by YCharts.

From a dividend perspective, Medtronic has done an excellent job of growing its dividend at a respectable rate. Just last month, the company announced plans to raise its dividend by 8%, as well as increasing its share-buyback program. With Medtronic paying out less than a third of its earnings in dividends, the company should be able to sustain its dividend growth even with the Obamacare tax sapping some of its earnings.

When will Medtronic raise its dividends again?
Medtronic, Inc. (NYSE:MDT) just raised its dividend, so don’t expect another jump until mid-2014. But as long as Medtronic can keep its business strong by using international growth to offset the negative impact of higher taxes, the stock should keep delivering the goods for dividend investors.

The article How Medtronic Overcame Obamacare to Hit Multi-Year Highs originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool owns shares of Medtronic.

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