Medtronic dividend: cash coverage and yield
Medtronic's base dividend forecast is 2.89, then 2.93 and 2.97 per share. Medtronic's FY2026 distributions used 86.1% of free cash flow, leaving room for other needs.
How much does Medtronic pay per share?
Base dividends per share are 2.89, then 2.93 and 2.97. The bear case holds them at 2.88 throughout. The bull row rises to 2.93, 3.01 and 3.09. The base path extends the record of annual increases with small steps, while the bear case pauses because dividends already consumed 73.2% of real free cash flow. Medtronic has raised its dividend for 49 consecutive years, which supports a pause rather than a cut.
| Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 | |
|---|---|---|---|---|---|
| EPS, diluted | 3.73 | 3.61 | 2.76 | 2.82 | 3.73 |
| Free cash flow per share | 4.21 | 4.02 | 3.91 | 3.44 | 4.42 |
| − Dividends paid, per share | 2.83 | 2.78 | 2.76 | 2.71 | 2.50 |
| = FCF not paid out, per share | 0.58 | 0.24 | 0.04 |
What this means. The company’s own free cash flow per share matches ours at 4.21, while real free cash flow per share is lower at 3.86 because we subtract shares given to employees as pay.
Does Medtronic's dividend fit its free cash flow?
Dividends and buybacks absorbed more than free cash flow in FY2025 and FY2024. FY2026 was more restrained: distributions used 86.1% of free cash flow, leaving room for other needs. Buybacks are easier to reduce than dividends, which become an ongoing expectation.
| Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 | |
|---|---|---|---|---|---|
| Free cash flow | 5,426 | 5,185 | 5,200 | 4,580 | 5,978 |
| − Dividends paid | 3,639 | 3,589 | 3,666 | 3,616 | 3,383 |
| − Share buybacks | 1,035 | 3,235 | 2,138 | 645 | 2,544 |
| = Free cash flow not paid out | 752 | 319 | 51 | ||
| Paid out, % of free cash flow | 86.1% | 131.6% | 111.6% | 93.0% | 99.1% |
What this means. In 2025 and 2024, the company paid shareholders more cash than it generated, so it had to use savings or borrow money to cover the difference.
What could change Medtronic's dividend?
Management’s September 1, 2026 guidance targets FY2027 organic revenue growth of 7.2%–7.8%. It also targets operating profit growth of 10%. The target is 50 basis points of operating-margin expansion. That guidance predates the completed MiniMed exchange.
The base case would remain intact if growth moderates after the extra week, operating margin expands about 50 basis points in FY2027, and cash generation continues to fund the dividend and selective buybacks.
What is Medtronic's dividend yield against its price?
Underlying revenue growth was 5.8%, within 8.4% reported growth. Operating margin held at 17.8%. Medtronic’s own real free cash flow fell to 13.7% of revenue. Net debt reached $18,741 million. Diluted EPS was $3.73 in FY2026. The shares trade at $94.23. Next-12-month P/E is 14.7x, with a 3.1% dividend yield. The forward earnings measure includes Diabetes through year-end.
| Today (Oct 15, 2026) | |
|---|---|
| Share price | 94.23 |
| P/E, next 12 months (calculated) | 14.7x |
| Free cash flow yield (calculated) | 4.5% |
| Dividend yield (calculated) | 3.1% |
What this means. The enterprise value and related measures still include MiniMed even though the company split it off in October, so they may not describe the business investors own today.