We just added a medical technology giant to the Best Dividend Stocks list today. The company has more than $120 billion in market cap and recently raised its dividend by 13%. The company primarily offers medical devices, although it is diversified across therapeutic areas including cardiac, minimally-invasive restorative therapy and diabetes. Fundamentally, this company has an advantage in the form of an aging US population. This technology giant recently made an acquisition that is likely to realize cost savings of more than $800 million in 2 years.
It is highly profitable and part of the Dividend Aristocrat group of companies – having raised its dividend for 38+ consecutive years. The company can easily afford to raise its dividends by double digits given their modest payout ratio and expected earnings growth of 7% in FY2017.
To summarize, here are 4 reasons why you should own this stock:
- In spite of being a “dividend aristocrat,” the company has enough room to keep increasing its dividends further.
- Strategic acquisitions are going to result in massive cost savings going forward.
- Demographic dividend in the form of an aging US population favors the company’s growth outlook.
- With more than $120 billion in market cap, this company has a wide economic moat.
Soft Removal of an Electric Utilities Company
We are removing an electric utilities company that we added back in 04/11/14. The stock has so far given a total return of 18%, which includes the gain on the price and the dividends paid out. Even though this stock is being removed, we continue to rate it positively at 3.5 using our DARS model’s metrics.
