In investing, short-term volatility often leads to long-term opportunities. This means that deep bear markets in stocks in the near term can result in valuations that are detached from reality.

But since such markets can sometimes be justified by poor business fundamentals, it can be difficult to separate the wheat from the chaff. The best way to do this, in my opinion, is to focus on stocks that have increased their dividends for decades. Because only a select few businesses are great enough to pull this off, this is arguably a reliable indication of quality.

With a track record of nearly a half-century of uninterrupted dividend growth, medical device maker Medtronic (NYSE: MDT) has established itself as a reliable dividend grower. But is the strong dividend stock a buy for income investors near its 52-week low share price of $76? Let's take a closer look at Medtronic's fundamentals and valuation to find out.

Continue reading

Source Fool.com