Medtronic Inc.

I do not own this stock of Medtronic Inc. (NYSE-MDT). In 2009 I was looking for a good US stock for my US$ account. I had heard good things about this stock and also it is in Health Care sector which is a weak sector in Canada. Also, we just do not have the massive companies in Canada that the US has.

This is certainly a dividend growth company. The dividend yield is moderate and the growth in dividends is moderate to good. The current dividend yield is 1.88% and the 5 year median dividend yield is 2.46%. The 5 and 10 year dividend growth is at 8.35% and 14.47% per year.

As a Canadian, I am glad I have not been invested in this stock. For the 5 year periods ending in 2005 to the 5 year period ending in 2012, I would have lost money every year in total returns. For the 5 year period ending in 2012 the total return would be 0.56% per year. For the financial year ending in April 2013 I would have finally made some money with a total return of 13.18% per year.

The total returns to date for Canadians is at 12.77% and 2.22% per year over the past 5 and 10 years. The portion of this total return attributable to dividends would be 2% and 1.22% per year. The portion of this total return attributable to capital gains would be 10.77% and 1% per year. This is in CDN$.

The for total returns to date for Americans the 5 and 10 year total return would be at 9.95% and 4.39% per year. The portion of this total return attributable to dividends would be 2.04% and 1.77% per year. The portion of this total return attributable to capital gains would be 7.91% and 2.62% per year. This is in US$.

The stock price hit a high in 2008 and it took until 2014 to surpass this high. This, of course, points out clearly that you have to sure you at least pay a reasonable price for a stock to make any money. If you pay too much you could end up not making any money no matter how good the company is.

The outstanding shares have decreased by 2.3% and 1.9% per year over the past 5 and 10 years. Outstanding shares have increased due to Stock Options and they have decreased due to Buy Backs. Because outstanding shares have decreased, you need to be concerned with growth as well as per share growth. For example you should look at Revenue growth as well as Revenue per Share growth.

Also, the 5 year growth per year for this stock is lower than the 10 years growth per year as far as Revenues go. However, this reverses for Earnings and Cash Flow.

Revenue has grown at 3.1% and 6.5% per year over the past 5 and 10 years in US$. Revenue per Share has grown at 5.5% and 9.2% per year over the past 5 and 10 years in US$.

Earnings or Net Income growth is at 7.2% and 4.6% per year over the past 5 and 10 years in US$. Earnings per Share growth is at 9.4% and 6.6% per year over the past 5 and 10 years in US$.

Cash Flow gr5owth is at 5.6% and 8.7% per year over the past 5 and 10 years in US$. Cash Flow per Share growth is at 8% and 8.2% per year over the past 5 and 10 years in US$.

The Return on Equity has been over 10% each year over the past 10 years. The ROE for 2014 is 15.8% and the 5 year median ROE is at 19.4%. The ROE on comprehensive income for 2014 is just slightly lower at 15.2% and the 5 year median is 18.5%.

The debt ratios are very good on this stock. The Liquidity Ratio is 3.82 for 2014. The Debt Ratio is 2.05 for 2014 and the Leverage and Debt/Equity Ratios are 1.95 and 0.95 for 2014.

Sound bit for Twitter and StockTwits is: US Health Care dividend growth stock. See my spreadsheet at mdt.htm.

This is the first of two parts. The second part will be posted on Wednesday, October 8, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.

Medtronic is the world's leading medical technology company, pioneering device-based therapies that restore health, extend life and alleviate pain. Primary products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation management, among others. Medtronic operates its business in one reportable segment, that of manufacturing and selling device-based medical therapies. The company does business in more than 120 countries. The company's product lines include cardiac rhythm management, neurological and spinal, vascular and cardiac surgery. Its web site is here Medtronic.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

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