Medtronic: A Long-Term Prospect (Perhaps)

The surgical theaters, you understand, are becoming quite the spectacle. Not with blood and screaming, no, no. With robots. Intuitive Surgical, of course, has been the ringmaster for some time, a rather profitable circus, averaging a respectable 19% annual gain. Though, frankly, the price of admission these days feels… ambitious. One searches for a more grounded performer, a company that doesn’t require a second mortgage to acquire a single share.

Enter Medtronic. A titan, yes, but one with a touch more humility, or at least, a more reasonable valuation. A forward P/E of 16.3? A small mercy in these inflated times. A trifle below its five-year average, a detail that doesn’t shout from the rooftops, but whispers a quiet suggestion to those who listen.

Why Medtronic, You Ask?

Ah, the question. It’s not merely about the numbers, though they are, naturally, important. It’s about the duration. The steady pulse. Medtronic, you see, has been distributing dividends for 48 years. Forty-eight! One imagines the accountants, a grim and dedicated order, performing their rituals with unwavering consistency. A record, they proclaim proudly. And one suspects, a burden. Maintaining such a streak requires a certain… discipline. A resistance to the temptations of reckless abandon. It’s almost… Soviet.

The payout ratio, currently around 79%, suggests a sustainable income stream. Room for growth, they say. One always suspects a little puffery in such pronouncements, but the figures are… plausible. Let us consider the sheer scale of the operation: over 41,000 active patents, 13,600 scientists and engineers scattered across 150 countries. A veritable army of white coats and slide rules. They treat 70 health conditions, a number so vast it borders on the absurd. And they have 174 clinical trials underway. One wonders if they even remember what they’re testing anymore.

More than 41,000 active patent matters.
Over 13,600 scientists and engineers in more than 150 countries.
Treatments for over 70 health conditions.
174 active clinical trials.
$2.7 billion annually on research and development.

Surgery, endoscopy, cardiac ablation, neurovascular disorders… the list goes on. A sprawling empire of medical interventions. They even dabbled in diabetes, but are now spinning off that division, a sensible move. Sometimes, one must prune the garden to allow the stronger plants to flourish. A valuation of $8 billion for the spin-off? A mere trifle compared to Medtronic’s $124 billion market cap. A rounding error, really.

Growth, naturally, is the mantra. Revenue up 8.7% year over year. And, crucially, FDA approval for their Hugo robotic surgery system. CEO Geoff Martha, a man who clearly understands the power of a well-crafted press release, proclaims that they are “unlocking new markets and investing in high-growth opportunities.” One suspects he’s also unlocking a rather substantial bonus. Still, the numbers are… encouraging. It’s an exciting time for Medtronic, he says. One hopes he’s not entirely delusional.

By unlocking new markets and investing in high-growth opportunities, we are accelerating performance across the company. Our innovation pipeline and portfolio breadth give us confidence in our ability to sustain long-term growth. It’s an exciting time for Medtronic.

So, would I own shares of this company for many years, perhaps a lifetime? Perhaps. It offers a combination of growth and income, a rare and increasingly valuable commodity. It’s on my watchlist, certainly. Though one must always remember the inherent absurdity of predicting the future. The market, after all, is a capricious mistress. And sometimes, the most carefully laid plans… well, they simply vanish into thin air. Like a phantom limb.

2026-02-28 17:32

Why Medtronic, You Ask?

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