Medtronic's (NYSE:MDT) next quarterly dividend will be $0.58 per share, the medical device maker's board of directors has declared. This is to be paid on Oct. 16 to stockholders of record as of Sept. 25.
The amount matches the previous payout, which was dispensed in July. Previous to that, Medtronic had paid $0.54 per share. The company is a Dividend Aristocrat, which means it is one of the few S&P 500 index components that has raised its distribution at least once annually for a minimum of 25 years in a row. Since the beginning of 2010, Medtronic's dividend has risen steadily, from just under $0.21 per share to the current level.
At the current share price, the payout yields 2.3%.
Like other companies in the medical device segment, Medtronic has struggled during the coronavirus pandemic. This is largely due to the fact that, in the face of the outbreak, many elective surgeries have been postponed or canceled given the general healthcare system's pivot toward fighting the corornavirus. That steep drop in elective surgeries has softened demand for many types of devices.
In its most recently reported quarter, Medtronic suffered a 26% year-over-year decline in revenue (to just under $6.0 billion), with generally accepted accounting principles (GAAP) earnings falling 46% to $646 million. Both results were beneath the average analyst estimates.
On Monday, however, investors seemed cheered by the news of yet another dividend. Medtronic's stock rose by almost 1.8%, beating the frothy gains of the top equity indexes on the day.
The company is scheduled to release its first quarter of fiscal 2021 results Tuesday morning before market open.