Abbott Laboratories: A Preferred Defensive Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 28 2026
0mins
Source: NASDAQ.COM
- Dividend King Status: Abbott Laboratories has raised its quarterly cash dividend for 55 consecutive years, currently offering a yield of approximately 2.8%, and while growth has slowed, the consistent dividend increases provide reliable returns for investors over the long term.
- Acquisition-Driven Growth: Abbott's $21 billion acquisition of Exact Sciences is expected to dilute earnings in the short term, yet this strategic move positions the company as a leader in cancer diagnostics, laying the groundwork for future growth.
- Relative Valuation Advantage: Trading at a forward P/E of 16.5 times, Abbott is valued lower than competitors like Johnson & Johnson, which trades over 20 times, highlighting its attractiveness among diversified healthcare stocks, especially during market volatility.
- Market Safe Haven: As market uncertainty rises, investors typically gravitate towards defensive dividend stocks, and Abbott, with its solid financial performance and growth potential, could serve as a safe harbor for investors, particularly in times of economic fluctuations.
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Analyst Views on ABT
Wall Street analysts forecast ABT stock price to rise
19 Analyst Rating
17 Buy
2 Hold
0 Sell
Strong Buy
Current: 95.630
Low
136.00
Averages
148.11
High
169.00
Current: 95.630
Low
136.00
Averages
148.11
High
169.00
About ABT
Abbott Laboratories is a global healthcare company. The Company’s principal business is the discovery, development, manufacture, and sale of a broad and diversified line of healthcare products. Its segments include Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. Established Pharmaceutical Products segment is engaged in the international sales of a broad line of branded generic pharmaceutical products. Diagnostic Products segment is involved in the worldwide sales of diagnostic systems and tests for blood banks, hospitals, commercial laboratories and alternate-care testing sites. Nutritional Products segment is engaged in the worldwide sales of a broad line of adult and pediatric nutritional products. Medical Devices segment is involved in the worldwide sales of rhythm management, electrophysiology, heart failure, vascular, structural heart, neuromodulation and diabetes care products. It serves people in more than 160 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Data Platform: The newly launched Omnipod Discover data management platform offers clear diabetes data analytics for users and healthcare providers, supporting personalized care and is anticipated to strengthen interactions between patients and their healthcare teams, improving treatment outcomes.
See More
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- Portfolio Diversity: The ETF currently holds 103 stocks, primarily investing in financially sound U.S. companies that consistently pay dividends, such as Merck, Home Depot, and Coca-Cola, ensuring stability and profitability in its investments.
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