Medtronic Stock Hands $28 Bil Back – Worth a Look?
In the last five years, Medtronic (MDT) stock has returned $28 Bil back to its shareholders through cold, hard cash via dividends and buybacks. Let’s look at some numbers and compare how this payout power stacks up against the market’s biggest capital-return machines.
As it turns out, MDT stock has returned the 68th highest amount to shareholders in history.
| MDT | S&P Median | |
|---|---|---|
| Dividends | $18 Bil | $3.0 Bil |
| Share Repurchase | $9.7 Bil | $3.0 Bil |
| Total Returned | $28 Bil | $6.0 Bil |
| Total Returned as % of Current Market Cap | 26.2% | 16.6% |
Why should you care? Because dividends and share repurchases represent direct, tangible returns of capital to shareholders. They also signal management’s confidence in the company’s financial health and ability to generate sustainable cash flows. And there are more stocks like that. Here is a list of the top 10 companies ranked by total capital returned to shareholders via dividends and stock repurchases.
Top 10 Stocks By Total Shareholder Return
- RMD, MDT Top Revvity Stock on Price & Potential
- Large Cap Stocks Trading At 52-Week High
- Ten-Year Tally: MDT Hands Back $52 Bil to Shareholders
- Large Cap Stocks Trading At 52-Week High
- S&P 500 Movers | Winners: ADI, MCK, MDT | Losers: INTC, TGT, DELL
- How To Trade Medtronic Stock Ahead of Its Earnings?
| Total Money Returned | As % Of Current Market Cap | via Dividends | via Share Repurchases | |
|---|---|---|---|---|
| AAPL | $514 Bil | 13.1% | $75 Bil | $439 Bil |
| GOOGL | $296 Bil | 7.4% | $17 Bil | $279 Bil |
| MSFT | $223 Bil | 7.1% | $105 Bil | $118 Bil |
| JPM | $176 Bil | 20.6% | $71 Bil | $105 Bil |
| META | $159 Bil | 9.4% | $10 Bil | $149 Bil |
| XOM | $152 Bil | 24.1% | $79 Bil | $73 Bil |
| BAC | $125 Bil | 31.6% | $45 Bil | $80 Bil |
| CVX | $112 Bil | 30.2% | $57 Bil | $55 Bil |
| WFC | $105 Bil | 41.2% | $22 Bil | $83 Bil |
| NVDA | $96 Bil | 2.0% | $3.0 Bil | $93 Bil |
For full ranking, visit Buybacks & Dividends Ranking
What do you notice here? The total capital returned to shareholders as a % of the current market cap appears inversely proportional to growth prospects for reinvestments. Stocks like Meta (META) and Microsoft (MSFT) are growing much faster, in a more predictable way, compared to the others, but they have returned a much lower fraction of their market cap to shareholders.
That’s the flip side to high capital returns. Sure, they are attractive, but you have to ask yourself the question: Am I sacrificing growth and sound fundamentals? With that in mind, let’s look at some numbers for MDT. (see Buy or Sell Medtronic Stock for more details)
Medtronic Fundamentals
- Revenue Growth: 6.9% LTM and 4.9% last 3-year average.
- Cash Generation: Nearly 15.2% free cash flow margin and 18.6% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in the last 3 years for MDT was 2.7%.
- Valuation: Medtronic stock trades at a P/E multiple of 22.8
| MDT | S&P Median | |
|---|---|---|
| Sector | Health Care | – |
| Industry | Health Care Equipment | – |
| PE Ratio | 22.8 | 24.3 |
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| LTM* Revenue Growth | 6.9% | 6.8% |
| 3Y Average Annual Revenue Growth | 4.9% | 5.5% |
| Min Annual Revenue Growth Last 3Y | 2.7% | 0.4% |
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| LTM* Operating Margin | 18.6% | 18.6% |
| 3Y Average Operating Margin | 18.5% | 18.1% |
| LTM* Free Cash Flow Margin | 15.2% | 14.2% |
*LTM: Last Twelve Months
The table gives a good overview of what you get from MDT stock, but what about the risk?
MDT Historical Risk
Medtronic isn’t immune to big drops. It fell about 36% in the Dot-Com crash and almost 57% in the Global Financial Crisis. The 2018 correction knocked it down 17%, while COVID pulled it nearly 40% off its peak. Even the inflation shock in 2022 caused a 45% decline. Strong fundamentals matter, but when the market sells off hard, Medtronic feels the pain too.
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, and outlook changes. Read MDT Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
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