What were you doing five years ago? Were you working from home due to the new pandemic? Watching Shakira and J. Lo perform at the Super Bowl? Perhaps you were buying some stocks. If you spent $1,000 on shares of the medical devices giant Medtronic (MDT 0.10%), how would you have done? Well, the news isn't very good: Your stake would be worth...$1,065.

So, yeah, you wouldn't have lost money, but you wouldn't have gained much, either. If you'd invested in a simple low-fee S&P 500 index fund instead, your investment would be worth $2,034, having doubled in just five years.

What happened with Medtronic? Well, my colleague Reuben Gregg Brewer has pointed to a period of slow growth and a bloated and unwieldy business portfolio, which Medtronic has been addressing by selling off some assets strategically while restructuring.

So, don't write Medtronic off just yet, though. It has a lot going for it. For one thing, there's its dividend, which recently yielded 3.15%. That payout has been growing, too, averaging annual increases of 5.3% over the past five years. And it has increased its dividend for 48 years in a row. That's not just good luck -- it reflects a resilient business committed to rewarding shareholders.

Person resting their head in their hand while looking away wistfully.

Image source: Getty Images.

One area of particular interest is artificial intelligence (AI), which Medtronic has been incorporating into its offerings, like many other companies. For example, it's using AI in its endoscopy equipment to help detect polyps. The company is growing, too, with fourth-quarter revenue of $8.9 billion, up 4%, and an operating profit of $6 billion for fiscal 2025, up 16% year over year.

Best of all, the company's stock seems appealingly valued, with a recent forward-looking price-to-earnings (P/E) ratio of 16, below its five-year average of 17. If you're looking for a combination of growth and income, give Medtronic some consideration for your long-term portfolio.