Three Dividend Kings Worth Buying
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 01 2026
0mins
Source: Fool
- Abbott's Stability: Abbott Laboratories (ABT) has increased its dividend for 50 consecutive years, currently paying $2.52 per share with a yield of 2.4%, surpassing the S&P 500's 1.1%, indicating strong free cash flow and a diversified healthcare business that supports ongoing dividend payments.
- Target's Recovery Potential: Despite challenges like low-margin essential sales and theft, Target (TGT) is implementing turnaround strategies under new CEO Michael Fiddelke, which could drive stock recovery; with a dividend yield of 4.5%, it offers investors a reliable source of passive income.
- Johnson & Johnson's Growth Outlook: After spinning off its consumer health business, Johnson & Johnson (JNJ) focused on innovative medicine and medtech, achieving a 6% sales increase to over $94 billion last year, with adjusted EPS rising over 8%, indicating strong revenue growth potential and a dividend of $5.20 per share at a yield of 2.3%.
- Investment Value of Dividend Stocks: In the current market environment, dividend stocks like Abbott, Target, and Johnson & Johnson provide investors with a safe source of passive income, especially during market volatility, making them suitable for those seeking long-term stable returns.
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Analyst Views on ABT
Wall Street analysts forecast ABT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ABT is 148.11 USD with a low forecast of 136.00 USD and a high forecast of 169.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
17 Buy
2 Hold
0 Sell
Strong Buy
Current: 109.080
Low
136.00
Averages
148.11
High
169.00
Current: 109.080
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.
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
Healthcare Stocks Show Dividend Growth Potential
- AbbVie's Dividend Performance: AbbVie boasts a dividend yield of 2.98% and has increased its quarterly dividend for 54 consecutive years, raising it by 5.5% to $1.73 per share in 2023, demonstrating strong cash flow and consistent dividend growth capability.
- Strong Financial Performance: AbbVie reported third-quarter revenue of $15.8 billion, a 9% year-over-year increase, although earnings per share fell 38% to $1.86, its investments in oncology are expected to lay the groundwork for future growth and enhance market competitiveness.
- Medtronic's Market Position: Medtronic, the largest stand-alone medical device maker with a market cap of $132 billion, reported second-quarter revenue of $9 billion, up 6.6% year-over-year, and forecasts a 5.5% revenue increase in 2026, indicating sustained growth potential in the medical device sector.
- Sustainability of Dividend Growth: With dividend payout ratios of 58% for AbbVie and 69% for Medtronic, both companies maintain relatively high ratios; however, due to strong free cash flow and ongoing revenue growth, they are expected to sustain their dividend payments, bolstering investor confidence.
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
Healthcare Stocks Show Dividend Growth Potential
- AbbVie's Dividend Performance: AbbVie boasts a dividend yield of 2.98% and has increased its quarterly dividend for 54 consecutive years, raising it by 5.5% to $1.73 per share in 2023, demonstrating strong cash flow and consistent dividend growth capability.
- Strong Financial Performance: AbbVie reported third-quarter revenue of $15.8 billion, a 9% year-over-year increase, although earnings per share fell 38% to $1.86, its investments in oncology are expected to lay the groundwork for future growth and enhance market competitiveness.
- Medtronic's Market Position: Medtronic, the largest stand-alone medical device maker with a market cap of $132 billion, reported second-quarter revenue of $9 billion, up 6.6% year-over-year, and forecasts a 5.5% revenue increase in 2026, indicating sustained growth potential in the medical device sector.
- Sustainability of Dividend Growth: With dividend payout ratios of 58% for AbbVie and 69% for Medtronic, both companies maintain relatively high ratios; however, due to strong free cash flow and ongoing revenue growth, they are expected to sustain their dividend payments, bolstering investor confidence.
See More
