For dividend growth investors seeking stability, reliability, and compounding income potential, this healthcare stock remains a standout. Operating in the high-demand medical devices space, the company supports long-term investment goals with a 7% three-year dividend CAGR, placing it in the top 40% of all dividend-paying stocks. Its nearly 50-year streak of dividend increases, combined with a healthy 44% payout ratio and low 0.5x net leverage, make it a model of dividend safety. These characteristics offer peace of mind in turbulent markets while laying the groundwork for continued income growth.
At the heart of its success is a strong medical technology platform, which drove 12% organic growth last quarter, with standout contributions from diabetes care, structural heart interventions, and electrophysiology. Outside of devices, its expansion into emerging markets and planned biosimilar launches create additional paths for long-term growth. The risks are real—COVID test sales are fading, Chinese reforms are pressuring diagnostics, and tariffs are expected to have a nearly $200 million impact this year—but margin expansion and EPS growth of 11% YoY in Q2 suggest the company is managing headwinds well. The outlook is bright, with opportunities tied to aging demographics, chronic disease management, and innovative care delivery models.
This stock is more than just a stable payer—it’s a diversified growth engine with low volatility and top-tier liquidity. Investors looking to understand why it continues to earn its place in our Dividend Growth Portfolio will find valuable insights in the full article, from its competitive advantages to the key numbers driving our Hold recommendation. Read on to discover why this under-the-radar healthcare pick may still deserve a spot in your portfolio.
