The number of surgeries performed by Intuitive Surgical's (ISRG 1.15%) da Vinci surgical robot rose 17% year over year in the second quarter of 2025 as the company placed 16% more da Vinci systems into service in the quarter than it did a year ago. And the total installed base of da Vinci systems rose 14% to 10,488 around the world.
However, there's one problem for dividend investors: Intuitive Surgical doesn't pay a dividend. Luckily, there's a competitor that does. But first, let's step back and have a look at this emerging field.
Robotic surgery is growing fast
There's huge value in robotic surgery for patients. From a basic perspective, these robots allow for more precise and less invasive healthcare procedures. Plus, a robot could be controlled from anywhere around the world, potentially opening up world-class care to every person alive. It's an exciting technology that's still in the early stages of development and deployment.
Image source: Getty Images.
Intuitive Surgical, with its da Vinci surgical robot, is a pure play in the space and probably a solid option for growth-oriented investors. The stock even looks attractively priced, relative to its recent history, with the price-to-sales ratio (P/S) and price-to-earnings ratio (P/E) below their five-year averages. But it's a growth stock and doesn't offer a dividend.
Dividend investors aren't shut out of the surgical robotic revolution, however. Medtronic (MDT 0.80%), which has an historically high 3% yield, is in the space, too.
Medtronic has more than one tailwind
Medtronic is one of the largest medical-device makers in the world, with businesses in the cardiovascular, neuroscience, medical surgical, and diabetes spaces (more on diabetes in a second). It's a valuable partner to medical systems the globe over, giving it an "in" as it looks to expand the reach of its own surgical robot. Given the size of the world, it seems likely there's room for more than just the da Vinci system.
With regard to surgical robots, Medtronic's entrant is the Hugo system. As such, Hugo is set to be a valuable growth business for Medtronic. As it gets accepted and approved for more uses, the story will get better and better. The key is that selling the robot is just the first step. Services and parts are an ongoing revenue stream, making up around 75% of Intuitive Surgical's top line.
That's just one good reason to like Medtronic and will play out in 2026 and well beyond. The big shift taking place right now, however, is the company's effort to improve its profitability, with management focusing on the businesses with the widest margins. This effort will take a huge step forward in 2026 when Medtronic spins off its diabetes operations.
While the diabetes business is growing, it has tight margins. In fact, the spinoff is expected to be accretive to earnings because it will allow Medtronic's higher-margin operations to shine through.
Another positive is that, after a long drought, Medtronic has a number of new products that are starting to get approved and put into the market. (Hugo is just one of the exciting new product opportunities.) Not only will the spinoff improve the company's profitability, but it also will come with the ramp-up of product innovation. And behind that is the ongoing opportunity in medical surgery.
Medtronic is a good deal
Not only is the backstory for Medtronic strong, but the company also has an attractive 3% yield that's supported by a dividend that's increased for 48 consecutive years. That yield is near the highest levels in the company's history, which hints that the shares are attractively priced.
Backing that up is the fact that Medtronic's P/S and P/E ratios are below their five-year averages. If you're a dividend investor, Medtronic looks like a very attractive stock that could see big tailwinds in 2026 and beyond. It's also an income-rich way to play the surgical-robot revolution.
