Medtronic

Methodology

Medtronic's diversified medical device portfolio generates relatively stable earnings from recurring procedure volumes, though reimbursement pressures and new product cycles create some variability. Aging demographics provide long-term growth visibility. The calculation works reasonably well when normalizing for acquisition impacts and focusing on organic growth from core franchises.

Methodology

Medtronic typically trades at moderate PEG ratios reflecting the mature nature of many device categories despite innovation in diabetes technology and surgical robotics. Growth has decelerated from historical levels, requiring realistic expectations. Compare to diversified med-tech peers while considering the technology pipeline, competitive dynamics, and reimbursement environment in key categories.

Methodology

Medtronic offers a substantial dividend with a long track record of consistent increases, making PEGY analysis important for evaluating total return potential. The dividend provides meaningful income for investors in this stable med-tech leader. PEGY better captures why income-focused investors own Medtronic alongside expectations for steady but unspectacular growth.