Keeping an eye on Medtronic
Back in early June I did a rundown of expected returns for Medtronic's stock. The outcome of my mid-case scenario was 9.7% per year -- not terrible, but not great and less than what I typically look for when I'm adding to my portfolio.
Fast forward to today. Since June 6, Medtronic's stock has fallen and it's raised its dividend by 8%. Without changing anything else in my model, that brings Medtronic's mid-case up to 12%/year -- a much better buying opportunity.
I'm focusing on MDT here, but this applies to pretty much any stock. If you like the underlying business but aren't totally sold on the price/expected returns, sometimes a little patience can pay off.
Since I'm under the Foolish trading guidelines, writing this now means that I have to wait a few days to buy any MDT. But when those few days are up, let's just say the stock has moved up to near the top of my "add" list.