This week, five of the portfolio holdings ranked in the Top 10: BKH, MMM, NNN, PII and TGT.
| Ticker | Account Value |
| BKH | 1,063.02 |
| MMM | 2,039.64 |
| NNN | 926.12 |
| PII | 971.30 |
| TGT | 1,119.80 |
The lowest amount belongs to NNN. However, there are imbalances in the portfolio, from both a stock perspective and a sector perspective, due to the outperformance of TDS in recent months. Two sectors are eligible for additional investment at this time: Health Care and Materials. None of the five stocks above are from these sectors. Materials and Health Care are nowhere to be found in the entire Top Ten. However, the Top Thirteen includes a health care company, and it isn’t current portfolio holding ABBV.
Addicts and gamblers, <fine, if you insist> investors, it is time to add a new position to the Portfolio for the Ages!
Medtronic PLC
Here is the profile from Medtronic’s own investor relations page which I found to be much more exciting than that of TD Ameritrade’s:
Bold thinking. Bolder actions. We are Medtronic. Medtronic plc, headquartered in Dublin, Ireland, is the leading global healthcare technology company that boldly attacks the most challenging health problems facing humanity by searching out and finding solutions. Our Mission — to alleviate pain, restore health, and extend life — unites a global team of 95,000+ passionate people across more than 150 countries. Our technologies and therapies treat 70 health conditions and include cardiac devices, surgical robotics, insulin pumps, surgical tools, patient monitoring systems, and more. Powered by our diverse knowledge, insatiable curiosity, and desire to help all those who need it, we deliver innovative technologies that transform the lives of two people every second, every hour, every day. Expect more from us as we empower insight-driven care, experiences that put people first, and better outcomes for our world. In everything we do, we are engineering the extraordinary.
Now, you see? If I had hit you with that boring logo and then blasted you with the usual broker’s profile which gets into the weeds of corporate structure, you would not be as excited as I am to be adding this dividend powerhouse to the portfolio. This company has been around since 1949, paid its first dividend in the year I was born and eventually settled into an impressive and ongoing, 46-year dividend increase streak.
The Details
Data as of 2023-10-21
| Name | Medtronic PLC |
| Ticker | MDT |
| Website | Investor Relations |
| Sector | Health Care |
| Dividend Streak | 46 years |
| Last Price | $104.37 |
| Div Amt (quarterly) | $0.69 |
| Ann Dividend | $2.76 |
| Last Ann Div Inc | 4.6% |
| Dividend Yield | 3.8% |
| Payout Ratio (ttm) | 51.0% |
| Beta (5-yr, mon) | 0.72 |
| P/E Ratio (ttm) | 13.54 |
| Margin of Safety | 19.7% |
Reasons to Invest
First, MDT is trading at their pandemic low, well under their 10-year average P/E Ratio of 17.
Second, the need for health care doesn’t really bend when the going gets tough. In the Great Recession, MDT was unfazed, increasing their EPS in every calendar year from 2007 through 2011. Of course, they also raised their dividend in each of those years as well.
Establishing a position in MDT for approximately $1,000 means purchasing 14 shares. However, given the accumulated dividends is sitting at $286.89, I will be buying an extra 3 shares for a total of 17 shares Monday morning. Sláinte agus táinte!