This grand high yield dividend stock has just turned into a better buy

In recent years, Medtronic's revenue growth has been relatively stable.
The company's entry into the robot-assisted surgery market may help change that.
There are other reasons to invest in Medtronic, including its Rock Dividend Program.

Medical equipment experts Medtronic (NYSE: MDT) Over the past five years, the stock has been underperformed; the stock has fallen far behind the broader stocks. One of the problems it has encountered is slow revenue growth. Although it explores plans to remove some of its low-growth units to improve this aspect, it eventually abandoned the idea.

However, new developments show that Medtronic can quickly take advantage of a large number of long-term opportunities. Let's take a deeper look at this and discuss what it means to investors.

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Medtronic has been developing its Robotic Assisted Surgery (RAS) device, The Hugo System. The machine is in use in many countries, but has not been cleared in the United States. That's where Medtronic can make money, though, so the company has been testing its Hugo system in the U.S. to support regulatory licensing.

Medtronic recently announced that it has taken the goal one step closer. Eventually, it submitted an application to the U.S. Food and Drug Administration (FDA) to approve the Hugo system. This is after the device reached its primary safety and efficacy endpoint in clinical trials with 137 patients undergoing urology surgery.

If the FDA approves its approval on the Hugo system with this indication (urology procedure), then this could be a big deal for Medtronic. As the company pointed out two years ago, only about 5% of the surgeries that can actually perform robotic surgery. This is important because minimally invasive robotic surgery has significant advantages in open procedures. The former uses tiny, highly maneuverable instruments and cameras, allowing experts to perform small incisions and access the organs while providing high-definition views.

Therefore, no large amount of cutting of skin tissue is required to enter the organ directly. Minimally invasive surgery has significant advantages for both patient and hospital systems, including faster recovery and shorter accommodation. However, the market is seriously underestimated, which is the current number of global programs. Also considering that the world’s population is aging, this will lead to a higher demand for these surgeries in the long run, as older people have more medical needs. In this market, things look good.

Yes, the company will enter Intuitive surgerythe manufacturer of Da Vinci systems, Da Vinci System is a RAS device that has long been used in urological procedures. But considering the openness of this field, there should be more room for players. Medtronic's Hugo system is currently only seeking approval for urology procedures, but it will target other therapeutic areas in the future. As the company receives more approvals, the Hugo system should ultimately have a meaningful impact on its financial performance.

Although Medtronic's stock has performed poorly in recent years, its financial performance remains fairly stable. Revenue and revenue are consistent, thanks in large part to the deep product portfolio.

MDT Revenue (Quarterly) Chart — YCHARTS's MDT revenue (quarterly) data.

Medtronic also often earns new licenses. Although most of its segments have not released particularly impressive sales growth, its diabetes care division has been an exception. Medtronic offers a range of products through this business, including the innovative 780g insulin pump, where there should be plenty of room for growth. Medtronic is currently seeking approval for expanded devices to include people with type 2 diabetes; currently only available in the United States for type 1. This would be meaningful extension considering that up to 95% of diabetics have type 2 breeds.

Diabetes care sector should continue to perform well. The approval of the Hugo system will strengthen the entire business. Even if the threat of tariffs may affect its costs and bottom line, Medtronic's financial performance should be relatively stable.

The company has increased its spending for 47 consecutive years and has an excellent dividend profile. In just three years, it will join the prestigious dividend king group. This makes Medtronic the highest stock for those seeking income, and recent developments related to Hugo will only make it more attractive.

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Prosper Junior Bakiny has a place in intuitive surgery. Motley fool has a place and recommends intuitive surgery. Motley Fool recommends Medtronic and recommends the following options: Long-term January 2026, Medtronic and Short January 2026 for $75, $85 for Medtronic. Motley Fool has a disclosure policy.

This grand high-yield dividend stock was originally published by Motley Fool