With the tumultuous markets that we have been witnessing over the past few weeks, Medtronic has stood strong as investors found solace in the company’s valuation and its business model.
The stock is currently trading at only around 16 times forward earnings, which is well below what the broader market is trading at. Such a low valuation compared to other stocks is rare in today’s market for a stock that has delivered phenomenal dividends so far. The medical appliances and equipment giant has 40 consecutive years of dividend growth and yields 2.21%. With an 8.6% EPS growth expected for the next year and a dividend payout ratio of just under 40%, the company has ample room to continue on its dividend growth spree next year as well. With the topsy-turvy market behavior, sectors like healthcare and consumer goods are suddenly back on investors’ radar. With the intention of investing in stable businesses that would continue to thrive if a recession hits, Medtronic was pushed up by two places on the Most Watched Stocks List.
The other three stocks that were the highlight of last week’s movers and shakers are all consumer goods stocks. Kimberly-Clark, Clorox and General Mills all moved up by one place each and secured their places on investors’ watchlists. All three stocks have excellent dividend growth history and have been trending a lot over the past couple of weeks. On a side note, as crude oil hits $70 per barrel, it is interesting to see consumer goods’ firms such as GIS already issuing warnings that they foresee a rise in shipping costs to adversely affect their margins going forward.
Our Most Watched Stocks List is a user-generated, interest-based ranking of dividend-paying stocks, giving you a real-time snapshot of buying interest in the market. Generated by our Premium members’ watchlists, it’s aggregated and ranked by the most watched criteria.
The list has been designed to help income investors navigate the top dividend stocks being tracked by one of the world’s most advanced investing communities.