Medtronic (MDT +2.62%), one of the world’s largest medical device makers, raised its dividend for the 49th consecutive year this June. If it raises its dividend again next year, it will cross the 50-year threshold required for becoming a Dividend King.

But over the past five years, Medtronic’s stock has declined 31%. Even with reinvested dividends, it delivered a negative total return of 19%. Let’s see why Medtronic’s stock slumped, and why it might be worth buying as an income-generating turnaround play.

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What happened to Medtronic?

Medtronic was once considered a reliable blue chip stock. But in fiscal 2023 and fiscal 2024 (which ended in April 2024), its EPS declined as it struggled with supply chain…