Abbott Labs Increases Dividends for 54 Years, Acquires Exact Sciences
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 25 2026
0mins
Should l Buy ABT?
Source: NASDAQ.COM
- Dividend Growth Record: Abbott Labs has raised its dividends for 54 consecutive years, with a 6.8% increase in 2023, reflecting its strong cash flow and profitability, which boosts investor confidence and solidifies its status as a 'Dividend King'.
- Acquisition-Driven Growth: Abbott is finalizing a $23 billion acquisition of Exact Sciences, which saw an 18% revenue increase to $3.2 billion in 2025, expected to enhance Abbott's diagnostics segment and strengthen its foothold in the rapidly growing cancer testing market.
- Core Business Recovery: While Abbott's total revenue rose 5.7% to $44.3 billion in 2025 and adjusted EPS increased 10% to $5.15, challenges from lawsuits and recalls related to FreeStyle Libre 3 have impacted some segments, affecting overall market performance.
- Optimistic Market Outlook: Abbott's Volt Pulsed Field Ablation system has received FDA approval, potentially treating 12 million U.S. patients over 65 with atrial fibrillation, with expectations for this number to double in the next two decades, indicating significant growth potential in cardiac care.
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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: 102.380
Low
136.00
Averages
148.11
High
169.00
Current: 102.380
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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- Abbott Laboratories' Strengths: Abbott Laboratories, with a market cap of $179.2 billion, boasts a revenue base of $44.33 billion and a free cash flow margin of 16.5%, demonstrating strong negotiating leverage and capital deployment options, alongside a 13.2% return on invested capital reflecting management's investment acumen.
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- Abbott's Innovation Capability: Abbott Laboratories offers innovative medical devices across several therapeutic areas, with its FreeStyle Libre continuous glucose monitoring system showing strong growth prospects globally, boasting a market cap of $178 billion and a gross margin of 52.72%.
- Ongoing Product Development: Abbott is expected to continue developing new products, and with its patent protections and strong reputation in the healthcare industry, it is poised for long-term financial growth, while its status as a Dividend King attracts long-term investors.
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- Dividend King Status: Abbott is recognized as a Dividend King, having increased dividends for 50 consecutive years, showcasing its strong profitability and stable cash flow, making it an ideal choice for long-term investors.
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- Administrative Burden Reduction: The integration enables clinicians to receive status updates and results directly within OncoEMR, thereby reducing administrative burdens and allowing healthcare professionals to focus more on patient care, ultimately enhancing the quality of healthcare services.
- Accelerated Treatment Decisions: The collaboration between Abbott and Flatiron aims to remove key barriers in community oncology practices, accelerating treatment decision-making processes and facilitating personalized patient care, aligning with the modern healthcare demand for data-driven solutions.
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- Increased Healthcare Allocation: Following the reconstitution, the allocation to the healthcare sector has risen from 15.4% to 18.9%, with UnitedHealth and Abbott Laboratories joining the top ten holdings at 4% and 3.95% respectively, thereby strengthening the fund's investment in the healthcare sector.
- Dividend Growth Potential: While the overall dividend yield of the ETF remains at 3.4% post-reconstitution, the new holdings boast a higher average five-year dividend growth rate of 9.4%, which is expected to generate greater long-term income for investors, enhancing the fund's appeal.
- Strong Dividend Track Record: Both UnitedHealth and Abbott Laboratories have impressive dividend growth records, with the former increasing dividends by 52% over the past five years and the latter by 40%, providing investors with a stable income source and further solidifying the ETF's investment value.
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