Medtronic: The Only Medical Device Stock I'd Consider a Lifetime Hold

By Selena Maranjian – Feb 28, 2026 at 9:30AM ESTKey PointsMedtronic has been hiking its dividend for nearly 50 consecutive years.It's spinning off its diabetes division to focus on faster-growing businesses.Its strategy makes sense -- and its valuation is appealing, too.When it comes to medical devices, some of the most exciting ones, to me, are robotic surgical systems. Intuitive Surgical has been a leader in that arena, averaging annual gains of 19% over the past 15 years. Its shares are a bit on the steep side these days, though, and it's not the only game in town, either. Consider Medtronic (MDT +0.62%), which is moving into robotic surgeries while remaining a titan in the medical device world. Its valuation is more compelling, as it sports a recent forward-looking price-to-earnings (P/E) ratio of 16.3, for example, a bit below its five-year average of 16.7. Image source: Getty Images. Why Medtronic? There's a lot to like about this company. Let's start with its dividend, which recently yielded 2.9%. Better still, it has been increasing that payout for 48 consecutive years. That's a record it's proud of, and you can be sure it aims to continue hiking that dividend over time. That streak also reflects a well-run business, as it's been able to stay in business for decades while paying out dividends to shareholders annually -- and increasing the payout annually, too. Meanwhile, its payout ratio -- the portion of earnings it pays out in dividend form -- was recently about 79%, leaving some room for further growth and suggesting that the dividend is sustainable. Here's a little more about Medtronic: It has more than 41,000 active patent matters. It employs more than 13,600 scientists and engineers in more than 150 countries. It treats more than 70 health conditions with its offerings. It has more than 174 active clinical trials. It's spending around $2.7 billion annually on research and development. Its treatments span surgery, endoscopy, cardiac ablation, neurovascular disorders, neuromodulation, pelvic health, gastric therapies, and cranial and spinal technologies, among others. ExpandNYSE: MDTMedtronicToday's Change(0.62%) $0.60Current Price$97.63Key Data PointsMarket Cap$125BDay's Range$96.33 - $98.0452wk Range$79.55 - $106.33Volume236KAvg Vol7.5MGross Margin59.59%Dividend Yield2.90% Medtronic has also had a diabetes division, offering services and therapies for insulin-dependent patients. But notably, in order to focus on faster-growing businesses, it's spinning off this unit in early March, aiming for a valuation of close to $8 billion. (Medtronic's market value at the time of this writing is $124 billion.) Medtronic is growing We all want the companies we invest in to grow, and Medtronic is growing. Its recently reported third quarter featured revenue up 8.7% year over year, and importantly, it secured FDA approval for its Hugo robotic surgery system. CEO Geoff Martha noted: By unlocking new markets and investing in high-growth opportunities, we are accelerating performance across the company. Our innovation pipeline and portfolio breadth give us confidence in our ability to sustain long-term growth. It's an exciting time for Medtronic. Given all that Medtronic already does and its deep-pocketed commitment to innovation and growth, I'd be happy to own shares of this company for many years, if not a lifetime. It offers not only a good chance of solid growth but also a solid stream of income. It's on my watchlist.Read NextFeb 22, 2026 •By Prosper Junior Bakiny1 Reason I'd Buy Medtronic Stock and Never SellFeb 22, 2026 •By Eric VolkmanDividend Medtech Giant Medtronic Is Built to Survive Any Market CrashFeb 21, 2026 •By Reuben Gregg BrewerThe Only Healthcare Stock I Would Buy and Never Sell Is MedtronicJan 18, 2026 •By Prosper Junior Bakiny3 Reasons to Add This Medical Technology Stock to Your Portfolio in 2026Dec 29, 2025 •By Motley Fool YouTubeMedtronic: A Strong Contender in the Medical Device ArenaDec 14, 2025 •By Prosper Junior BakinyThis Dividend Stock Just Hit a Major Milestone. Time to Buy?About the AuthorSelena Maranjian is a contributing personal finance and investing expert at The Motley Fool. Selena has produced The Motley Fool’s nationally syndicated newspaper feature since 1997. She is the author of The Motley Fool Money Guide and Investment Clubs: How to Start and Run One the Motley Fool Way, and the co-author of The Motley Fool Investment Guide for Teens and several editions of The Motley Fool Investment Tax Guide. Prior to The Motley Fool, she worked as a high school teacher and public opinion analyst. She holds a master’s degree in teaching from Brown University and a master’s degree in finance from the Wharton School of the University of Pennsylvania.TMFSelenaStocks MentionedMedtronicNYSE: MDT$97.63(+0.62%)+$0.60*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.