Kalman likes dividend paying stocks, and Minneapolis-based medical device maker Medtronic fits the bill with a 3.21% yield. The U.S. Food and Drug Administration approved Medtronic’s Micra leadless pacemaker in May, which Kalman says could aid profit growth. As elective surgeries ramp up from the pandemic backlog, Medtronic is positioned to benefit. In fiscal 2023 ending in April, Medtronic earned $3.75 billion on $31 billion in revenues.
He says a modest multiple of 11 times projected 2023 earnings and a 4.5% dividend yield, combined with 101 treatments in various stages of development, make the company’s shares attractive. One risk: last year’sGeneral Dynamics stock price through the past year.Among industrials, General Dynamics, the $39 billion aerospace and defense company, is poised to benefit from the recent increases in commercial travel, according to Kalman.