Medtronic’s 48th dividend hike and robotic surgery breakthrough redefine its future
Medtronic continues to fortify its position in healthcare innovation while upholding a long-standing commitment to shareholders. The company has just augmented its dividend for the 48th consecutive year, providing investors with a forward yield of 3%. Recent advancements also encompass regulatory approval for a novel robotic surgery system and designs to divest its diabetes division by the end of 2026.
In 2025, Medtronic secured U.S. regulatory clearance for the Hugo system, a robotic-assisted surgery device engineered for urologic procedures. This technology is anticipated to play a pivotal role in the company's future expansion as shipments escalate and additional medical applications gain approval.
The company is also progressing with the separation of its diabetes business. This division accounted for 8% of total revenue in fiscal year 2025 but contributed only 4% of operating profits. Medtronic aims to finalize the spin-off by the close of 2026, birthing a new, independent public entity. Geoff Martha, the incumbent Chairman and CEO, remains at the helm, with no announced alterations to leadership on the horizon. With nearly five decades of uninterrupted annual dividend increases, Medtronic is primed to join the exclusive club of Dividend Kings within the next few years. The fusion of steady shareholder returns and strategic business maneuvers underscores its robustness in the medical technology sector.
Medtronic's latest milestones underscore its dual commitment to innovation and financial steadfastness. The Hugo system's growth and the planned diabetes business divestment will sculpt its operations in the coming years. Meanwhile, the company's consistent dividend growth bolsters its allure to long-term investors.
