TSI senior analyst Scott Clayton has identified six medical technology leaders uniquely positioned to capitalize on the market’s renewed appetite for medical technology once near-term headwinds fade. Featured in our latest Globe and Mail column, these companies stand out because they operate in a segment the market has recently overlooked amid consumer confidence worries and the AI-stock rotation. This pullback has created an opportunity for shareholders as long-term demand drivers (an aging population and a growing global middle class) remain firmly intact. One recent $1.1 billion takeover offer for an X-ray imaging player offers a clear signal of the underlying value building in this space.
We deployed our strict 12-point TSI Dividend Sustainability Rating System to isolate the companies combining strong long-term growth potential with rock-solid balance sheets and dependable cash flows. While medtech stocks have lagged in the short term, these aren’t speculative recovery bets. They’re established, profit-generating industry leaders with the underlying financial health required to sustain payout stability through market cycles.
The selected firms represent a diverse mix of medical devices, diagnostic equipment, surgical technology, and sterilization solutions. From pacemaker and joint-replacement giants to leaders in sleep apnea therapy and hospital sterilization systems, each entity pairs meaningful growth potential with a business mix insulated from single-sector volatility.
Our screening process started with a broad list of dividend-paying Canadian and U.S. medical technology companies showing strong growth prospects. From there, we put each contender through our rigorous rating framework: payout histories, management’s dedication to dividends, non-cyclical stability, low currency and political risk, and long-term earnings power needed to guarantee dividend security through near-term market noise.
Excerpt from theglobeandmail.com, August 20, 2026
Sustainable dividends from medical technology stocks well-placed to regain their recent highs.
Last week’s $1.1 billion takeover offer for X-ray imaging player Varex Imaging Corp. points to a bright outlook for leaders in MedTech (medical technology) despite today’s share price declines.
MedTech includes medical devices such as pacemakers and defibrillators, and diagnostic equipment such as imaging systems and blood-testing equipment. That extends to robotic surgery systems and minimally invasive surgical devices.
Stocks in the segment have underperformed on fears struggling consumer confidence could hurt demand. An investor shift to AI stocks has also stolen some of the thunder of Medtech shares.
We started with our extensive list of dividend-paying Canadian and U.S. companies, before singling out MedTech stocks offering steady growth prospects – as well as sustainable dividends. We then applied our TSI Dividend Sustainability Rating System to home in on top dividend payers. Our system awards points to a stock based on key factors:
- One point for five years of continuous dividend payments
- Two points for more than five
- Two points if it has raised the payment in the past five years
- One point for management’s commitment to dividends
- One point for operating in non-cyclical industries
- One point for limited exposure to foreign currency rates and freedom from political interference
- Two points for a strong balance sheet, including manageable debt and adequate cash
- Two points for a long-term record of positive earnings and cash flow sufficient to cover dividend payments
- One point for an industry leader
Companies with 10 to 12 points have the most secure dividends, or the highest sustainability. Those with seven to nine points have above average sustainability; average sustainability, four to six points; and below average sustainability, one to three points.
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6 medical tech leaders positioned to deliver solid payouts
Medtronic plc (with a 3.1% yield), based in Ireland but with operational headquarters in Minneapolis, is one of the world’s largest medical device providers.
Stryker Corp. (1.1%), headquartered in Michigan, offers a wide range of products that directly tap demand from aging baby boomers. That includes implants used in joint replacements such as knees and hips.
Steris plc (1.1%), based in Ireland but with operational headquarters in Ohio, sells sterilization equipment, surgical tables, and other products and services used in hospitals and laboratories.
San Diego-headquartered ResMed Inc. (1.1%) is a leader in CPAP (nasal continuous positive airway pressure) devices, which treat patients with sleep apnea.
Abbott Laboratories (2.2%), based in Illinois, offers medical devices, diagnostic testing, and more.
And finally, U.K.-based Smith & Nephew plc (2.6%) is a leading maker of hip and knee replacement joints, plus products for minimally invasive surgery and more.
Scott Clayton, MBA, is senior analyst for TSI Network and associate editor of TSI Dividend Advisor.
