Still, a dividend doesn’t make a stock immune to losses. The goal is to find businesses with the financial strength to support their payments, then avoid putting too much money into any single company. Dividend ETFs can make that process easier.

Why Dividend Growth Matters

The S&P 500 Dividend Aristocrats are companies in the index that have increased their dividends for at least 25 consecutive years. Dividend Kings have raised their payouts for at least 50 consecutive years. Simply paying a dividend for five decades isn’t enough to qualify. The payment must keep growing each year.

Think about what that requires. A company must navigate recessions, changing consumer habits, rising costs, and competition while continuing to send shareholders a bigger annual payment. That record can indicate a durable business and disciplined management. It also gives investors a useful starting point when researching income opportunities.

However, the past only tells part of the story. Investors still need to consider debt, profits, and cash flow—the money a business generates to fund operations, investments, and dividends.

A familiar name with a long dividend streak can still run into trouble. Owning a basket of companies helps spread that risk, which is one reason dividend ETFs can be useful portfolio building blocks.

NOBL: A Focus on Established Dividend Growers

The ProShares S&P 500 Dividend Aristocrats ETF (BATS: NOBL) offers a straightforward way to invest in companies with lengthy dividend-growth records.

Its annual expense ratio is 0.35%, or about $35 for every $10,000 invested.  NOBL’s appeal goes beyond its starting yield. The strategy emphasizes companies that have repeatedly increased shareholder payments, giving investors exposure to businesses with an established commitment to dividend growth. Holdings include FactSet Research Systems (NYSE: FDS), Becton, Dickinson and Company (NYSE: BDX), Automatic Data Processing (NASDAQ: ADP), International Business Machines (NYSE: IBM), Medtronic (NYSE: MDT), and Chevron (NYSE: CVX). 

SCHV: Broad Value Exposure at a Low Cost

The Schwab U.S. Large-Cap Value ETF (NYSEARCA: SCHV) takes a broader approach.

It tracks the Dow Jones U.S. Large-Cap Value Total Stock Market Index and held 570 positions as of October 22, 2026. Its expense ratio is just 0.04%, or $4 annually on a $10,000 investment. Schwab reported a trailing distribution yield of 1.88% as of September 30, 2026. 

SCHD: A Stronger Emphasis on Income

The Schwab U.S. Dividend Equity ETF (NYSEARCA: SCHD) tracks the Dow Jones U.S. Dividend 100 Index and charges 0.06% annually, or $6 per $10,000 invested. Its trailing distribution yield was 3.24% as of September 30, 2026. That can appeal to investors who place greater importance on income today. However, distributions can fluctuate, and a higher yield doesn’t guarantee a better total return.

How to Choose the Right Dividend ETF for Your Portfolio

These funds serve different purposes. NOBL emphasizes long dividend-growth records. SCHV offers broad value exposure at a low cost. SCHD places greater emphasis on dividend income and financial quality. The strongest choice depends on what an investor needs from the portfolio. Look beyond the yield to the strategy, expenses, and underlying businesses. Dependable income starts with companies that can afford to keep paying it.

In the end, building a more resilient portfolio takes patience, and dividend ETFs can play a useful role. They offer a convenient way to spread investments across businesses while collecting income along the way. But even a dependable dividend strategy will have difficult stretches.

The key is to keep expectations realistic. Watch how the underlying companies support their payouts, consider whether the fund still fits your needs, and look at income alongside changes in your investment’s value. A thoughtful approach to dividend investing can help you stay focused on long-term goals when short-term market swings test your confidence.

GE HealthCare climbed more than 12% over a recent three-month stretch before crowded optimism showed up in the options data. Medtronic has soared roughly 26% since late May, triggering a similar contrarian warning. Both moves came alongside genuinely strong earnings reports, which is exactly what makes the setup tricky.

Strong fundamentals and crowded positioning can coexist. When too many investors chase the same trade at once, even good news struggles to push a stock higher. The next disappointment, however small, can trigger an outsized reaction. For investors watching the broader healthcare rally, GEHC and MDT are worth studying as a warning sign, not just two individual trade ideas.

What The Options Chains Are Signaling

Options positioning offers a read on sentiment that price alone doesn’t capture. When call buying dramatically outpaces put buying, it usually means traders are leaning heavily toward more upside. That’s bullish until it isn’t.

In GEHC’s options chain, near-term contracts show meaningful open interest building on the call side even as the stock has slid from its August highs near $77 down toward $67. That divergence, calls still active while price weakens, is a classic sign that positioning hasn’t caught up with reality yet.

Medtronic’s chain tells a related story. Volume and open interest cluster around strikes just above and below the current $92 level, with call-heavy activity following the stock’s climb off its May lows. Both patterns point to the same conclusion: traders have been betting on continuation, not correction.

That’s the setup options strategists watch for. Crowded call positioning after a big run doesn’t guarantee a pullback. But it does mean the risk-reward has shifted. New money coming into these names now is paying up for optimism that’s already been priced in once.

GEHC Earnings: Strong Quarter, Weaker Reaction

GE HealthCare’s second-quarter results, released in late July, were genuinely solid. Revenue reached $5.3 billion, up 5.7% year-over-year, with organic growth of 3.5%. Adjusted earnings per share came in at $1.13, up 6.6%.

The company’s growth engines performed well. Advanced Imaging Solutions grew 7.9%, and Pharmaceutical Diagnostics jumped 15.6%. Orders growth hit 11.1%, the strongest pace since the company’s 2023 spinoff from GE. Backlog climbed to a record $23.9 billion, with a book-to-bill ratio of 1.15 times.

Management reaffirmed full-year guidance: organic revenue growth of 3% to 4%, adjusted EBIT margin of 15.4% to 15.7%, and adjusted EPS between $4.80 and $5.00. Shares jumped 12% the morning when the results were released.

But that pop didn’t hold. Patient Care Solutions revenue fell 13.3%, and the stock has since drifted well below its 200-day moving average. The underlying business is executing. The stock, weighed down by crowded call positioning built during the rally, hasn’t been able to hold its gains. That combination, strong numbers and fading price action, is often where contrarian sell signals start to matter.

MDT Earnings: A Blowout Quarter, But Watch The Caveats

Medtronic’s first-quarter fiscal 2027 results, released September 1, were even stronger on the surface. Revenue hit $9.8 billion, up 13.7%; both figures were in line with analysts’ expectations and reflected organic growth. Non-GAAP EPS reached $1.45, up 15.1% year-over-year.

Cardiovascular led the way, growing 19.5% as reported. Cardiac Ablation Solutions surged 88% worldwide, gaining nine points of U.S. market share. Diabetes revenue grew 16.9%, and Medical Surgical and Neuroscience both posted double-digit or near double-digit gains.

Management raised full-year guidance twice over: organic revenue growth guidance was raised to 7.25%-7.75%, and non-GAAP EPS guidance rose to $5.94-$6.00. Shares jumped roughly 2.5% in premarket trading on the news.

Here’s the caveat worth flagging for readers. Medtronic’s quarter included an extra fiscal week, worth an estimated $570 million, or about 670 basis points, of that organic growth figure. Strip that out, and the underlying growth was closer to 7%, still the company’s best pace in nearly eight years, but not quite as dramatic as the headline number suggests.

That distinction matters for the crowding thesis. Options traders piling into calls after a 26% run may be reacting to the headline growth rate rather than the adjusted one. When the calendar boost rolls off next quarter, comparisons get tougher. That’s exactly the kind of gap between perception and fundamentals that can catch crowded positioning off guard.

The Takeaway For Investors

GEHC and MDT both delivered real, defensible earnings beats. Neither stock’s fundamental story is in question right now. What’s changed is the crowd around them.

When call buying accelerates faster than a stock can justify, the trade becomes as much about positioning as it is about performance. That’s the risk sitting underneath healthcare’s hot streak. A sector can be fundamentally sound and still leave short-term investors exposed if sentiment runs too far ahead of the numbers.

For investors holding GEHC or MDT, the message isn’t to panic. It’s to recognize that some of the recent upside may already be priced in through options markets. Watching how put-call ratios normalize after this stretch could offer an early read on whether the broader healthcare rally still has room to run or needs to cool off first.

Revenue hit $9.8 billion, up 13.7% organically, while adjusted EPS of $1.45 beat guidance by six cents. Every major segment grew, and management didn’t just meet expectations—it raised them for the rest of fiscal 2027.

That may change the story coming out of earnings. Medtronic has long been treated as a slow-growth medtech name, a dividend payer rather than a growth stock. This earnings report argues otherwise, at least for now.

Medtronic Earnings Beat: Is MDT Stock Ready to Break Out?

Cardiovascular revenue grew 19% year-over-year, led by Cardiac Ablation Solutions, which surged 88% globally and 139% in the U.S. That business surpassed $2 billion in trailing twelve-month revenue and gained nine points of U.S. market share. The Affera Sphere-9 catheter drove much of that momentum, with the U.S. installed base up more than 35% sequentially.

Neuroscience and Medical Surgical also contributed. Cardiac Rhythm Management grew 15% globally. Cranial & Spinal Technologies grew 13%, helped by the newly launched Stealth AXiS platform. Medical Surgical grew 10%, with Acute Care & Monitoring up 14% on video laryngoscope strength.

Hugo, Medtronic’s robotic-assisted surgery system, is on track to surpass 50,000 completed global procedures by fiscal year-end. Procedure growth is running at more than twice the market rate. Altaviva, the company’s tibial neuromodulation implant, saw active implanters more than double sequentially. These are the newer platforms management has been asking investors to be patient with. This quarter, patience started paying off.

Medtronic Stock: Strong Earnings Put Growth Back in Focus

Medtronic raised full-year organic revenue growth guidance by 50 basis points, to a range of 7.25% to 7.75%. Adjusted EPS guidance moved up to $5.94–$6.00, implying 7.4% to 8.5% growth for the year. Management still expects operating profit growth of roughly 10%, with operating margin expanding about 50 basis points.

That guidance bump matters more than the headline beat. Companies routinely beat a single quarter’s numbers without changing the full-year picture. Medtronic did both, and it did so while absorbing tariffs, increased M&A activity, and the pending consolidation of its Diabetes business.

MDT Stock Surges as Medtronic Earnings Change the Narrative

Not everything in this report is pure tailwind. An extra selling week contributed approximately $570 million, or 670 basis points, to organic revenue growth this quarter. That’s a one-time boost. Management expects second-quarter organic growth to normalize to roughly 6%, and it flagged that Acute Care & Monitoring’s mid-teens growth rate should cool as the year progresses.

The company is also spending. A $700 million strategic investment in Cornerstone Robotics expands Medtronic’s global surgical robotics footprint, but it comes with foregone interest expense that will weigh on near-term margins. That’s the trade-off of reinvesting in growth platforms while markets reward immediate profitability.

The planned separation of the Diabetes business, expected via a split-off, remains on track for before the fiscal year-end. But management was careful to note that the timing still depends on achieving optimal economics for shareholders. Guidance currently includes Diabetes for the full year; if the separation closes earlier, expect another revision to guidance.

Medtronic Earnings: Strong Growth Could Finally Lift MDT Stock

When I last covered Medtronic in February, the stock had just posted a strong quarter but only reiterated prior guidance. MDT was sitting at its 150-day moving average, with a possible double-top forming near $95–$100. That support didn’t hold. Shares fell sharply through the spring, bottoming near $76 in early May before beginning a slow climb back.

The chart today looks meaningfully different. MDT closed near $92, comfortably above its 50-day simple moving average of roughly $86. That moving average has been sloping upward since June, a sign the recovery trend has staying power rather than representing a short-lived bounce.

The MACD (12, 26, 9) is also constructive. The MACD line sits above its signal line, with both in positive territory, and the histogram has been green for weeks. That’s a healthier setup than the weakening momentum flagged in the February piece. Volume on the earnings gap was elevated, consistent with genuine buying interest rather than a low-conviction pop.

The stock still needs to clear resistance in the $95–$100 zone, the same range where it topped out last time. A close above $100 would put the December 2025 high near $106 back in play. Until then, treat that zone as the level to watch. A rejection there would echo the pattern from earlier this year.

MDT Stock Has Momentum After Medtronic’s Strong Earnings Beat

Medtronic’s fiscal Q1 report was strong by nearly every measure: revenue, margins, EPS, and forward guidance all moved in the right direction. The perception of Medtronic as a low-growth, tariff-burdened medtech name is increasingly at odds with a company posting double-digit organic growth across every segment. The chart has also repaired itself, trading above a rising 50-day moving average with improving momentum, a contrast to the failed support test that defined the February setup.

That doesn’t mean the stock is a straight line higher from here. The extra selling week flatters this quarter’s growth rate. Acute Care & Monitoring growth should decelerate, and the Cornerstone Robotics investment will pressure near-term margins. The Diabetes separation also remains a moving target. But for investors who track the gap between narrative and numbers, this quarter narrowed it considerably. Medtronic still needs to clear that $95–$100 resistance zone to prove the fundamentals story has staying power. Until it does, the setup is improved, but not yet resolved.

By almost any metric, this was a strong report and one that investors have been waiting on for some time. But the company offered full-year guidance that was only in line with its prior forecast, which was due to the continued impact of tariffs. 

That had analysts questioning how much growth was left in a stock that hit a 52-week high in December 2025. Analysts were bullish on MDT stock prior to the earnings report, so it’s a good idea to dive into the report to see if Medtronic belongs in your portfolio or on a watchlist.  

Organic Growth is the Key 

The core of Medtronic’s growth story lies in its robust organic revenue expansion. This metric strips away currency fluctuations, acquisitions, and divestitures to reveal the underlying health of a company’s operations. In Q3 fiscal 2026, Medtronic delivered worldwide revenue of $9.017 billion, reflecting 8.7% reported growth and a standout 6% organic increase. That was the company’s strongest quarterly performance in a decade. This exceeded internal guidance and market expectations, driven by broad-based strength across key portfolios rather than one-off events. 

Digging deeper into the report, we see that organic growth shone brightest in Medtronic’s Cardiovascular business, which was up 10.6% organically, fueled by an astonishing 80% surge in Cardiac Ablation Solutions from pulsed field ablation technology rollouts and 4 percentage points of market share gain in a $13 billion addressable market.  

Cardiac Rhythm & Heart Failure posted high-teens organic gains, while Diabetes grew 8.3% on MiniMed pump adoption and consumables. Neuroscience and Surgical Technologies added mid-single-digit organic advances, underscoring portfolio depth. Management highlighted recurring revenue streams through remote monitoring via CareLink, disposables like catheters and infusion sets as being the key to this sustainability, comprising 60-70% of the mix for annuity-like stability. 

For the full FY26, Medtronic reiterated approximately 5.5% organic revenue growth guidance, absorbing a $185 million tariff headwind, with Q4 expected to mirror Q3’s momentum. Adjusted gross margins hit 64.9%, reflecting pricing discipline and efficiency, while R&D investments rose 7% to fuel pipeline launches like the Sphere-360 catheter and Hugo robot approvals.  

The takeaway for investors is that Medtronic’s report wasn’t a one-off. This is execution on a roadmap that positions Medtronic for mid-single-digit growth amid demographic tailwinds such as aging populations and procedure volumes. Investors can trust these numbers as proof of operational leverage, not just hardware cycles, setting the stage for compounded returns.  

Growth In This Sector Seems Inevitable 

There are many reasons why thoughtful people can debate the merits of artificial intelligence (AI). But one of the most compelling applications for AI is in the field of robotics, particularly robotic surgery. This isn’t about removing the expertise of a doctor. It’s about providing the opportunity for a less invasive approach to surgery. And the applications are expanding.  

That said, Medtronic doesn’t have a moat in this sector. Many would argue it isn’t even the sector leader with companies like Intuitive Surgical (NYSE: ISRG) in the picture.  

However, this is an area that is primed for significant growth. According to Towardshealthcare.com, the industry will be valued at $16.07 billion in 2026 but is forecasted to grow to $63.73 billion by 2035. That’s a compound annual growth rate (CAGR) of 16.54%.  

Medtronic won’t have that growth to itself. But there’s room for more than one company, and Medtronic is well-positioned to grab significant market share. 

Two Ideas for MDT Stock 

If you own MDT stock, your opinion about the stock will depend on how long you’ve held it. If you bought the stock in the last three years, you’ve done pretty well. The same is true if you’ve owned it for more than 10 years.  

But if you bought the stock at its peak in 2026, it’s been a difficult hold. The total return for MDT stock is –5.24% over that span. That includes the company’s dividend, which has a yield of 2.95%.  

That brings us back to right now. The good news is that MDT stock appears to have found support at its 150-day simple moving average (SMA). If the stock holds above that level, it could retest its 52-week high around $106. However, the chart also shows a potential double-top reversal around the $95-$100 pivot with weak relative strength and expanding volume on downside candles.  

Simply put, the stock needs a catalyst to push it significantly higher. And with the company’s earnings outlook coming in line with expectations, upside may be limited. Nevertheless, Medtronic does pay a somewhat attractive dividend. The current annual payout is $2.84 per share. More importantly, the dividend is safe. In fact, if the company increases its dividend payout as expected, it will join the exclusive list of Dividend Kings. That means it will have increased its dividend payout for at least 50 consecutive years.  

Still, if you feel MDT stock carries too much risk on its own, you can get exposure to the stock through several exchange-traded funds (ETFs). One of those is the iShares U.S. Medical Devices ETF (NYSEARCA: IHI). This is a market-cap weighted index, and 4.9% of the fund is invested in MDT stock.  

Like many stocks in the sector, the performance of the fund has been choppy in the last five years. Still, if you’re looking for exposure to the field of robotic surgery without the risk of owning any particular stock, the IHI fund is a solid choice, particularly with an expense ratio of just 0.40%.  

Medtronic: The Investment Verdict 

Medtronic’s Q3 organic beat and recurring revenue resilience affirm a compelling growth thesis, even if near-term tariffs cap headlines. With support at the 150-day SMA and Dividend King status looming, patient holders stand to benefit from robotic surgery tailwinds and pipeline catalysts. For conservative exposure, IHI ETF offers diversified upside at low cost—buy the dip above key supports. 

The healthcare sector’s diversity also helps spread risk across different economic environments.

• Insurers and distributors benefit from long-term demographic trends
• MedTech firms are positioned for procedure growth and robotic innovation.
• Biopharma companies combine steady cash flow from established drugs with optionality from new therapies.

Healthcare stocks aren’t necessarily cheap across the board, but relative to the technology sector, these stocks have a refreshing valuation. For investors seeking balance, here are four healthcare stocks offering varying flavors of quality exposure.

Healthcare Stocks #1: Reliable Cash Flow and Defensive Value 

Cardinal Health (NYSE: CAH) offers investors pure exposure to the backbone of the U.S. healthcare supply chain. As a distributor of medical and pharmaceutical products, it’s a volume-driven business that benefits from rising healthcare consumption rather than breakthrough discoveries.  

Recent cost efficiency improvements and share buybacks have lifted sentiment after years of margin pressure. Its consistent cash generation and modest valuation provide a safe harbor for those seeking defensiveness amid broader market volatility. With a forward P/E around 26x and improving profitability, Cardinal Health represents value-oriented exposure to a critical healthcare service. 

Healthcare Stocks #2: Innovation-Driven Growth in Medical Devices 

Medtronic (NYSE: MDT) remains one of the best-positioned medtech companies for a post-pandemic rebound in surgical procedures. With reopening tailwinds normalizing, its cardiac and diabetes units are regaining growth momentum. The company’s focus on surgical robotics, particularly its Hugo robotic-assisted surgery platform, could serve as a key catalyst for longer-term innovation-driven upside.

While the stock has lagged peers due to execution concerns, its yield and consistent R&D investment support a patient investor thesis. For those seeking a mix of income and exposure to technology-driven healthcare devices, Medtronic offers that middle ground. 

Healthcare Stocks #3: Pipeline Strength and High-Yield Pharma

AbbVie Inc. (NYSE: ABBV) sits at an interesting inflection point. The company has managed the loss of exclusivity for its blockbuster drug Humira better than many expected, thanks to strong performance from Skyrizi and Rinvoq. These newer immunology therapies have already replaced much of Humira’s revenue base and position AbbVie as a durable cash-flow generator.

The company trades at a modest valuation compared to the broader market and offers a yield north of 3 percent, making it appealing for value-oriented investors looking for income and steady earnings. Its consistent dividend growth underscores AbbVie’s reputation as a reliable blue-chip pharma holding. 

Healthcare Stocks #4: Breakthrough Growth With GLP-1 Leadership

Eli Lilly & Co. (NYSE: LLY) has been the market’s darling in the healthcare sector, and for good reason. Its leadership in the GLP-1 weight-loss and diabetes category has reshaped the company’s earnings trajectory. With drugs like Mounjaro and Zepbound fueled by global demand, Lilly is posting breakout revenue growth alongside expanding margins.

While its valuation is rich, growth expectations justify much of the premium, especially given the long runway in obesity treatment markets. Beyond GLP-1 therapy, Lilly’s Alzheimer’s drug pipeline offers additional optionality. For investors willing to pay a premium for innovation, Lilly remains the quintessential healthcare growth stock. 

What Could Go Wrong with the Thesis? 

The main risk to this healthcare rotation thesis lies in timing and market psychology. If technology stocks continue outperforming—driven by AI enthusiasm or easing rate expectations—capital may remain concentrated in growth sectors. Additionally, healthcare’s regulatory backdrop always carries uncertainty; pricing reforms or reimbursement changes could compress margins across the industry.

Company-specific execution risks, such as Medtronic’s product launches or AbbVie’s pipeline transitions, should also be monitored. In short, while healthcare offers balance, it is not immune to macro or policy shocks. 

Conclusion 

As investors seek stability after an extended tech-led bull run, healthcare provides a refreshing mix of defensiveness, yield, and innovation. Cardinal Health delivers steady value, Medtronic offers device-driven recovery potential, AbbVie anchors with reliable cash flow and dividends, and Eli Lilly supplies pure growth leadership. Together, they form a diversified healthcare basket well-suited for investors navigating a maturing market cycle..