Medical device-maker Medtronic () announced that it will increase its quarterly dividend by 7% to $0.26 per share. This translates to a pay-out of $1.04 per year, or an annual yield of 2.8% at current price levels. The rate of increase is roughly in line with our long-term dividend growth expectations of 8% per annum.
Our dividend report on the firm indicated that we felt there was an excellent chance that the firm would be able to raise its dividend at a pace well beyond inflation. The firm has now raised its dividend for 35 consecutive years. We continue to hold the name in the portfolio of our Dividend Growth Newsletter with expectations for further growth. We’re leaving our fiscal 2016 dividend target of $1.32 per share in tact for Medtronic, a 3.5% yield at current price levels.
