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Medical Technology Aristocrat With 40 Years of Dividend Increases Re-Enters Best Dividend Stocks List

Abhishek Gupte May 02, 2018

Dividend.com has re-added a leading medical device firm to the Best Dividend Stocks List and removed a global industrial manufacturer from the list.

Healthcare remains one of the brightest trends when looking at longer-term investment ideas. The combination of an aging and growing population across the world is helping boost demand for the sector. That demand will only increase over time as the trends in place play out. With that in mind, investors have plenty of ways to cash in on rising long-term healthcare demand – from giant pharmaceutical firms to health insurers. And that includes our latest Best Dividend Stocks List addition.

As one of the largest medical device firms in the world, our new pick provides plenty of necessary gear for doctors and hospitals to treat patients. This covers everything from one-time-use basic appliances to higher-tech implantables and heart pumps. The combination of its product catalog creates plenty of steady and growing cash flows to help fund its sector-leading dividend. A dividend that has grown for 40 years.

But our pick’s best days continue to be ahead.

That’s because our new pick has a history of making some serious M&A moves to grow its underlying product catalog and revenues. And with the Republican tax plan and its ability to bring some of its hefty overseas cash hoard back to the U.S., the firm is poised to keep the growth and dividends going.

To summarize, here are five reasons why you should own this stock:

  1. Operates in over 150 countries with reported revenues of nearly $30 billion in 2017.
  2. Member of S&P 500 Dividend Aristocrats with a staggering 17% dividend per share growth rate over its history.
  3. Huge product portfolio across both low-tech and high-tech medical devices.
  4. This year represents the 40th consecutive year of dividend increases.
  5. Healthy payout ratio of 38% and healthy yield of 2.26%.

Soft Removal of an Industrial Firm From the Best Dividend Stocks List

As we add our medical device firm, we need to say goodbye to one of the list’s stalwarts. One of the top picks in the industrials sector has been a strong performer and has made the most out of the so-called “Trump Bump” as well as the growing world’s economy. Unfortunately, its growth has stalled in recent weeks and investors have fled shares. That’s caused its relative strength score and yield attractiveness score to dip below our standards. With its overall DARS score lower, we have been forced to soft remove the firm from our coveted list. However, the firm still offers plenty of potential for income seekers and has numerous positives. As a result, we remain bullish on the name.

Find out which ‘tech hero’ made it to our Best Dividend Stocks List here.

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