A Look at Medtronic's Dividend Increase

Medtronic (MDT) announced a 9.33% increase in the company's quarterly dividend. The new quarterly dividend increases to 20.5 cents per share versus 18.75 cents per share in the same quarter last year. The payout ratio increases slightly to 26% based on estimated April 2010 fiscal year end earnings of $3.13. The company's 5-year average payout ratio is approximately 24%. The company maintains an S&P Earnings & Dividend Quality Ranking of A-.

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Comments

[Sovestor:]

MDT has too much debt.....Not sure why it increased dividends,

Jun 19 11:20 AM

[Hank Rearden:]

The current net debt held by MDT is 15% of market Capitalization. With an interest cover ratio over 12.0, I would not consider that MDT has "too much debt".

Jun 22 12:55 AM