The Ultimate High Yield Healthcare Stock to Buy With $10,000 Right Now

Key Points

• When investors think about surgical robotics, they often default to Intuitive Surgical.

• Intuitive Surgical isn't a bad company, but it isn't the only option in the surgical robotics space.

• If you are a yield lover, you'll want to get to know this surgical robot maker that is just two years shy of Dividend King status.

• 10 stocks we like better than Intuitive Surgical ›

Technological advances are a key driver in the healthcare sector. One of the areas in which massive change has been taking place is surgery, with surgical robots helping to improve patient outcomes in a big way.

One of the leading names in the space is Intuitive Surgical (NASDAQ: ISRG). But with no dividend, income investors will find the stock a bit of a letdown. Good news: you have a high-yield alternative and it's on the verge of becoming a Dividend King.

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What does Intuitive Surgical do?

Intuitive Surgical makes the da Vinci surgical robot system. It was one of the first surgical robots on the market, and it is very popular. In the second quarter of 2025, da Vinci robots performed 17% more surgeries around the world than they did in the same quarter of 2024.

The healthcare company placed another 395 da Vinci robots into service in the quarter, as well, with nearly 10,500 working around the globe.

Image source: Getty Images.

What's interesting about the business model is that there are three sources of revenue. The first income stream is the sale of da Vinci surgical robots. But that's just the foundation, because those robots then need parts and service for as long as they are being used. In fact, at 60% of sales, selling instruments and accessories is actually the largest piece of the top line on Intuitive Surgical's income statement.

That shows the powerful recurring income that its installed base of robots can generate.

There's just one problem for dividend investors, given that Intuitive Surgical doesn't pay a dividend. It is a 100% growth story. But don't fret, if you like the growth story here and want some yield, too, you'll probably find Medtronic (NYSE: MDT) very interesting.

What does Medtronic do?

Medtronic is, technically, a diversified medical device company, with operations in the cardiovascular, neuroscience, diabetes, and medical surgical niches. The company is planning to spin off its lower-margin diabetes division in 2026, so very shortly it will just have three divisions, making the medical surgical group even more important than it is today. This business generated $2 billion in sales in the fiscal first quarter of 2026, compared to the $2.4 billion in the comparable quarter for Intuitive Surgical.

To be fair, Medtronic's medical surgical division includes more than just surgical robots. But the company's Hugo surgical robot is starting to gain traction. And Medtronic is a valued partner for most major healthcare systems, meaning it has an in with customers as it looks to grow its installed robot base. That said, it is still early days for the Hugo system. But that could be seen as a positive, since it means there's an opportunity for rapid growth.

Meanwhile, the fact that surgical robots is just one piece of a more diversified business could also be seen as a further bonus for conservative investors. Whereas Intuitive Surgical lives and dies by the success of da Vinci, the introduction of Hugo is just one of many opportunities for Medtronic, which is also bringing out other new medical products, as well. Diversification helps to reduce risk in your portfolio and for companies.

The big Medtronic story is the dividend

That said, for dividend investors, the big story with Medtronic will be its lofty 3% dividend yield. That's well above the market's 1.2% yield, the 1.7% yield of the average healthcare stock, and infinitely more exciting than no yield, which is what you'll get with an investment in Intuitive Surgical.

And Medtronic's dividend has been increased annually for 48 consecutive years, which is just two years shy of Dividend King status. So, it not only offers a high yield, but it is also a reliable dividend payer.

There are usually more ways to invest in an idea than you may think. When it comes to surgical robots, the best direct play is probably Intuitive Surgical. But that doesn't mean it is the only choice. If you like dividends or just prefer not to go all in on surgical robots, diversified Medtronic is the high-yield alternative to Intuitive Surgical that you may have overlooked. And that could make it the ultimate high-yield healthcare stock for your portfolio today.

Should you invest $1,000 in Intuitive Surgical right now?

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Reuben Gregg Brewer has positions in Medtronic. The Motley Fool has positions in and recommends Intuitive Surgical. The Motley Fool recommends Medtronic and recommends the following options: long January 2026 $75 calls on Medtronic and short January 2026 $85 calls on Medtronic. The Motley Fool has a disclosure policy.