How Much Will Medtronic Pay Out in Dividends This Year?

Medtronic (NYSE: MDT) , a beast of a medical-device company, has caught the eye of more than a few income investors. It has enacted dividend raises at least once annually for a hard-to-beat 47 years straight and approaches high-yield dividend territory with a payout hovering just below 4%.

As that distribution is a major part of the stock's popularity, it's worth looking at a key number behind it -- quite simply, how much will it amount to across 2024?

An incremental raiser

Medtronic recently declared a dividend raise. Concurrent with the release of its latest financials in May, the medical-device king added $0.01 per share to its quarterly payout for a new level of $0.70. This will be paid each quarter in this new fiscal year.

The final $0.69 per-share distribution was handed out in April, so that plus the three $0.70 payouts equals $2.79 per share. That's nice and chunky for yield seekers. When mashed against the less than $78 per-share stock price, Medtronic's calendar 2024 distributions will pay out at a 3.6% rate. That's better than many blue chip stocks, to say nothing of the generally dividend-averse healthcare sector.

We should always be a bit wary of modest dividend raises such as this one. Medtronic is a sprawling and powerful company, but it's also fairly mature. While it managed to lift its fiscal 2024 revenue by 3.6% year over year (to $32.4 billion), this followed a 2023 that saw a slight (1%) decline. As for profitability, 2024's headline net income was 2% down from the previous year at almost $3.7 billion.

Slow growth ahead?

Medtronic is projecting top-line growth of 4% to 5% for fiscal 2025, but some analysts would beg to differ. On average, they're projecting a rise of barely over 3%.

This stock is a slow-moving incumbent that's best suited for yield seekers. I don't anticipate great movement on its fundamentals and, consequently, stock price, but I think those dividend raises will continue... as modest as they've been lately.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Medtronic and recommends the following options: long January 2026 $75 calls on Medtronic and short January 2026 $85 calls on Medtronic. The Motley Fool has a disclosure policy .