Abbott Laboratories: A Steady Dividend Growth King
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy ABT?
Source: Fool
- Diversified Business Structure: Abbott Laboratories operates across four business units—diagnostics, medical devices, nutrition, and established pharmaceuticals—ensuring that if one segment faces challenges, others can compensate, thereby enhancing overall financial stability.
- Medical Device Growth: Despite a decline in coronavirus testing sales impacting the diagnostics segment, the medical devices division reported double-digit sales growth in the latest quarter, demonstrating the company's strong performance in innovation and market demand.
- Acquisition-Driven Growth: Abbott is set to complete its acquisition of Exact Sciences, a leader in the cancer screening market, in the second quarter, a strategic move expected to further drive earnings growth and solidify its leadership in the healthcare sector.
- Sustained Dividend Growth: Abbott has increased its dividend for 54 consecutive years, with a 70% increase over the past five years, currently paying $2.52 per share with a yield of 2.2%, showcasing the company's robust cash flow and commitment to shareholder returns.
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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: 111.470
Low
136.00
Averages
148.11
High
169.00
Current: 111.470
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.
Abbott Laboratories: A Steady Dividend Growth King
- Diversified Business Structure: Abbott Laboratories operates across four business units—diagnostics, medical devices, nutrition, and established pharmaceuticals—ensuring that if one segment faces challenges, others can compensate, thereby enhancing overall financial stability.
- Medical Device Growth: Despite a decline in coronavirus testing sales impacting the diagnostics segment, the medical devices division reported double-digit sales growth in the latest quarter, demonstrating the company's strong performance in innovation and market demand.
- Acquisition-Driven Growth: Abbott is set to complete its acquisition of Exact Sciences, a leader in the cancer screening market, in the second quarter, a strategic move expected to further drive earnings growth and solidify its leadership in the healthcare sector.
- Sustained Dividend Growth: Abbott has increased its dividend for 54 consecutive years, with a 70% increase over the past five years, currently paying $2.52 per share with a yield of 2.2%, showcasing the company's robust cash flow and commitment to shareholder returns.
See More
Exact Sciences' Sale to Abbott Clears HSR Waiting Period
- Transaction Progress: Exact Sciences (EXAS) shares rose 0.5% as reports confirmed that the HSR waiting period for its $21 billion all-cash acquisition by Abbott Laboratories (ABT) expired on Thursday, indicating the deal has cleared antitrust scrutiny and boosting market confidence in its success.
- Market Reaction: Following the news, Abbott (ABT) shares also increased by 0.5%, reflecting investor optimism regarding the acquisition, which is expected to enhance Abbott's market share and growth in the cancer screening sector.
- Deal Background: Abbott announced the acquisition of Exact Sciences last November, valuing the deal at $105 per share, aimed at strengthening its competitive position in the cancer screening market, aligning with its long-term growth strategy.
- Investor Interest: Although Exact Sciences and Abbott did not immediately respond to media inquiries, the positive sentiment surrounding the deal may attract more investor attention, particularly regarding technological innovations and market potential in the cancer screening field.
See More
Abbott Unveils New Data on Atrial Fibrillation Treatments
- Volt PFA System Performance: The VOLT-AF Global IDE study reveals that Abbott's Volt PFA System achieves an impressive 84.2% success rate in treating Paroxysmal Atrial Fibrillation (PAF), solidifying Abbott's competitive edge in the cardiac treatment market.
- Persistent Atrial Fibrillation Efficacy: Nearly 68% of patients treated with the Volt PFA System for Persistent Atrial Fibrillation (PersAF) remain free from recurrence, demonstrating the system's effectiveness in complex cases and enhancing physician confidence in its application.
- TactiFlex Duo Catheter Clinical Data: Six-month results from the FOCALFLEX Global CE Mark trial show an 81% success rate for TactiFlex Duo in treating PAF patients, with self-reported quality of life scores rising from 64.4 to 86.4, indicating the device's potential to significantly improve patient quality of life.
- FDA Breakthrough Device Designation: TactiFlex Duo has received FDA Breakthrough Device Designation for treating Ventricular Tachycardia, further expanding Abbott's product line in cardiac electrophysiology and underscoring the company's commitment to developing advanced treatment tools in response to the rising global incidence of Atrial Fibrillation.
See More
AbbVie's Outlook: February Decline Appears to Indicate a Buying Opportunity
Stock Performance: AbbVie Inc. (NYSE: ABBV) stock has seen a decline despite strong quarterly performance and better-than-expected guidance, raising questions about potential price pullbacks, although it is well-supported by market trends.
Revenue Growth: The company reported solid revenue growth, particularly in its immunology segment, with significant contributions from key products, indicating a robust market presence and potential for continued expansion.
Analyst Sentiment: Analysts have responded favorably to AbbVie's 2026 guidance, highlighting double-digit growth in key product lines and suggesting a positive outlook for the company's future performance.
Investment Recommendations: Institutional activity remains strong, with a majority ownership in the stock, and analysts recommend buying AbbVie shares, anticipating a price target increase to $250, with potential for even higher valuations.
See More
FDA Classifies Abbott's Product Recall as Most Serious After Deaths
- Recall Severity: The FDA has classified Abbott Laboratories' (ABT) recall of certain FreeStyle Libre 3 and FreeStyle Libre 3 Plus sensors as the most serious type, following seven deaths and 860 serious injuries linked to faulty glucose readings, highlighting significant safety concerns surrounding the product.
- Health Impact on Patients: Abbott reported that inaccurate glucose readings from the faulty sensors could lead to incorrect clinical decisions for diabetes patients, potentially resulting in undetected long-term lower blood glucose levels, which poses a serious threat to patient health and safety.
- Patient Notification Actions: Abbott has informed affected patients through letters sent on November 25, ensuring they are aware of the recall and can take necessary actions, demonstrating the company's commitment to crisis management and patient safety.
- FDA Warnings and Recommendations: The FDA provided a link to the list of affected product lots and advised patients to immediately discontinue use of the FreeStyle Libre 3 sensors, emphasizing the regulatory body's proactive role in safeguarding public health.
See More
FDA Reports 860 Serious Injuries and 7 Deaths Linked to Freestyle Libre 3 Sensors Recall by Abbott as of January 7
Injury and Fatality Report: The FDA has reported 860 serious injuries and 7 deaths associated with issues related to FreeStyle Libre 3 sensors.
Product Recall: The report highlights a recall of FreeStyle Libre 3 sensors due to safety concerns.
See More
Abbott Laboratories: A Steady Dividend Growth King
- Diversified Business Structure: Abbott Laboratories operates across four business units—diagnostics, medical devices, nutrition, and established pharmaceuticals—ensuring that if one segment faces challenges, others can compensate, thereby enhancing overall financial stability.
- Medical Device Growth: Despite a decline in coronavirus testing sales impacting the diagnostics segment, the medical devices division reported double-digit sales growth in the latest quarter, demonstrating the company's strong performance in innovation and market demand.
- Acquisition-Driven Growth: Abbott is set to complete its acquisition of Exact Sciences, a leader in the cancer screening market, in the second quarter, a strategic move expected to further drive earnings growth and solidify its leadership in the healthcare sector.
- Sustained Dividend Growth: Abbott has increased its dividend for 54 consecutive years, with a 70% increase over the past five years, currently paying $2.52 per share with a yield of 2.2%, showcasing the company's robust cash flow and commitment to shareholder returns.
See More
Exact Sciences' Sale to Abbott Clears HSR Waiting Period
- Transaction Progress: Exact Sciences (EXAS) shares rose 0.5% as reports confirmed that the HSR waiting period for its $21 billion all-cash acquisition by Abbott Laboratories (ABT) expired on Thursday, indicating the deal has cleared antitrust scrutiny and boosting market confidence in its success.
- Market Reaction: Following the news, Abbott (ABT) shares also increased by 0.5%, reflecting investor optimism regarding the acquisition, which is expected to enhance Abbott's market share and growth in the cancer screening sector.
- Deal Background: Abbott announced the acquisition of Exact Sciences last November, valuing the deal at $105 per share, aimed at strengthening its competitive position in the cancer screening market, aligning with its long-term growth strategy.
- Investor Interest: Although Exact Sciences and Abbott did not immediately respond to media inquiries, the positive sentiment surrounding the deal may attract more investor attention, particularly regarding technological innovations and market potential in the cancer screening field.
See More
Abbott Unveils New Data on Atrial Fibrillation Treatments
- Volt PFA System Performance: The VOLT-AF Global IDE study reveals that Abbott's Volt PFA System achieves an impressive 84.2% success rate in treating Paroxysmal Atrial Fibrillation (PAF), solidifying Abbott's competitive edge in the cardiac treatment market.
- Persistent Atrial Fibrillation Efficacy: Nearly 68% of patients treated with the Volt PFA System for Persistent Atrial Fibrillation (PersAF) remain free from recurrence, demonstrating the system's effectiveness in complex cases and enhancing physician confidence in its application.
- TactiFlex Duo Catheter Clinical Data: Six-month results from the FOCALFLEX Global CE Mark trial show an 81% success rate for TactiFlex Duo in treating PAF patients, with self-reported quality of life scores rising from 64.4 to 86.4, indicating the device's potential to significantly improve patient quality of life.
- FDA Breakthrough Device Designation: TactiFlex Duo has received FDA Breakthrough Device Designation for treating Ventricular Tachycardia, further expanding Abbott's product line in cardiac electrophysiology and underscoring the company's commitment to developing advanced treatment tools in response to the rising global incidence of Atrial Fibrillation.
See More
AbbVie's Outlook: February Decline Appears to Indicate a Buying Opportunity
Stock Performance: AbbVie Inc. (NYSE: ABBV) stock has seen a decline despite strong quarterly performance and better-than-expected guidance, raising questions about potential price pullbacks, although it is well-supported by market trends.
Revenue Growth: The company reported solid revenue growth, particularly in its immunology segment, with significant contributions from key products, indicating a robust market presence and potential for continued expansion.
Analyst Sentiment: Analysts have responded favorably to AbbVie's 2026 guidance, highlighting double-digit growth in key product lines and suggesting a positive outlook for the company's future performance.
Investment Recommendations: Institutional activity remains strong, with a majority ownership in the stock, and analysts recommend buying AbbVie shares, anticipating a price target increase to $250, with potential for even higher valuations.
See More
FDA Classifies Abbott's Product Recall as Most Serious After Deaths
- Recall Severity: The FDA has classified Abbott Laboratories' (ABT) recall of certain FreeStyle Libre 3 and FreeStyle Libre 3 Plus sensors as the most serious type, following seven deaths and 860 serious injuries linked to faulty glucose readings, highlighting significant safety concerns surrounding the product.
- Health Impact on Patients: Abbott reported that inaccurate glucose readings from the faulty sensors could lead to incorrect clinical decisions for diabetes patients, potentially resulting in undetected long-term lower blood glucose levels, which poses a serious threat to patient health and safety.
- Patient Notification Actions: Abbott has informed affected patients through letters sent on November 25, ensuring they are aware of the recall and can take necessary actions, demonstrating the company's commitment to crisis management and patient safety.
- FDA Warnings and Recommendations: The FDA provided a link to the list of affected product lots and advised patients to immediately discontinue use of the FreeStyle Libre 3 sensors, emphasizing the regulatory body's proactive role in safeguarding public health.
See More
FDA Reports 860 Serious Injuries and 7 Deaths Linked to Freestyle Libre 3 Sensors Recall by Abbott as of January 7
Injury and Fatality Report: The FDA has reported 860 serious injuries and 7 deaths associated with issues related to FreeStyle Libre 3 sensors.
Product Recall: The report highlights a recall of FreeStyle Libre 3 sensors due to safety concerns.
See More
