Dividend Aristocrat Abbott Laboratories Hikes Dividend by 25% Motley Fool. The second broad tailwind that will benefit Abbott Laboratories is the company’s focus on the emerging markets. Abbott has increased its dividend payout for 49 consecutive years and is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have increased dividends annually for at least 25 consecutive years. Abbott Laboratories has been wildly successful in its long history. Abbott ABT, -0.21% said Friday its board has raised its quarterly dividend by 25% to 45 cents a share. Many of the countries that this segment is focused on spend a very small proportion of their overall GDP on healthcare, a rate that is expected to increase in the future. This marks the 388th consecutive quarterly dividend to be paid by Abbott since 1924. Abbott Laboratories’ last segment is the Medical Devices unit. The Motley Fool - Eric Volkman. From a dividend perspective, Abbott Laboratories’ dividend also appears very safe. When it comes to dividends Abbott Labs is a legend, with 93 years of uninterrupted dividend payments to its name. It's a safe stock that can offer some stability in … It is the #1 pediatric nutrition provider in the United States and some other geographies. This performance forecast gives investors a benchmark by which to assess the company’s current valuation. Dividend Aristocrat Abbott Laboratories (ABT) will raise its quarterly dividend by 25% to $0.45 per share in the first quarter of 2021.This is by far the biggest increase announced by the company since it separated from fellow Aristocrat AbbVie (ABBV). Database of Dividend Aristocrats stocks comes from ProShares S&P 500® Dividend Aristocrats. Since Abbott is a Dividend Aristocrat (an S&P 500 index component that has increased its payout at least once every year for a minimum of 25 consecutive years), AbbVie is … Payout … While it may pay a modest dividend, the … The aging domestic population combined with the rather low focus on healthcare spending in emerging market countries should leave Abbott Laboratories plenty of room to grow for the foreseeable future. For Abbott, this hike makes its streak an impressive 49 years. Many of these products are recession-resistant and will enjoy more demand as consumer wealth increases in emerging markets, where ABT generates about half of its total sales. At the same time, the company’s share count increased. This segment was significantly bolstered in recent times by the St. Jude Medical acquisition, which helped the segment to grow sales by nearly 9% in the most recent quarter. This means that Abbott Laboratories didn’t use share repurchases to grow earnings-per-share, they were simply more profitable during a tumultuous time. This is up significantly from the $4.99 (growth of 13.7% per year) of adjusted earnings-per-share reported by the combined company in 2012. The company has also raised its dividend for over 40 consecutive years. In many ways, this starts at the top of the business via the leadership of Miles D. White. In this article, I will look at another one of their peers - Medtronic. The current valuation is noticeably higher than its long-term average. After increasing its dividend 14.3% last December, Abbott Laboratories now pays a quarterly dividend of $0.32 which yields 1.5% using the current share price. Abbvie has also raised its dividend payments by nearly 170% over the pa st six years and is a Dividend Aristocrat. Paid quarterly at approximately $1.11/share. Thanks for reading this article. Abbott's medical devices segment rakes in the most money, with sales of more than $12.2 billion in 2019. Abbott's BinaxNOW COVID-19 Rapid Test Receives FDA Emergency Use Authorization for First Virtually Guided, … This has fueled Abbott’s impressive history, and will continue to do so in the years ahead. Abbott Laboratories stock is an interesting pick for income investors because it has a long track record of rock-solid dividend payments and a history of dividend growth. Please send any feedback, corrections, or questions to support@suredividend.com. Abbott Laboratories is a diversified healthcare corporation with a market capitalization of $148 billion. The second component of Abbott’s competitive advantage is its focus on research and development. You absolutely need exposure to healthcare. Dividend Aristocrat Abbott Laboratories Hikes Dividend by 25%; Better Buy: Abbott Laboratories vs. DexCom; 3 Coronavirus Stocks With Long-Term Growth Potential It generated $31.9 billion in revenue last year, with a profit of nearly $3.7 billion. If an investor had held onto their shares of both companies, their per-share earnings would total $10.79 in 2018. I really like it when a company touts its dividend track record. Technical Analysis. Such double-digit percentage raises have cemented Abbott's deservedly strong reputation as a top income stock in the healthcare sector. Abbott Laboratories (NYSE:ABT) declares $0.45/share quarterly dividend, 25% increase from prior dividend of $0.36.Forward yield 1.71%Payable Feb. ... Dividend aristocrat … So far, their success has been driven by their efforts to offer innovative and advanced healthcare solutions. Abbott Laboratories’ competitive advantage is two-fold. If shares revert to our fair value estimate of 20, this would reduce total returns by 5% per year. A Better Crowd to Socialize With: The Dividend Aristocrats. The company’s recent increases have been relatively generous, although usually not this high. The company is likely to extend that streak this week when it announces its next quarterly distribution. Abbott also has a competitive advantage that comes from its laser-sharp focus on shareholder value. A member of the S&P Dividend Aristocrats group, Abbot once again increased its annual dividend payout to $1.60 this year, which equals a 3.62% dividend yield at … originally appeared on Fool.com. Mr. Ford has been with Abbott for 23 years. As a large, diversified healthcare business, Abbott Laboratories is extraordinarily recession-resistant. He holds JNJ for the dividend aristocrat qualities. For Abbott, this hike makes its streak an impressive 49 years. At the current share price, it would yield 1.7%. The first component is its remarkable brand recognition among its consumer medical products, particularly in its Nutrition segment. The company’s Branded Generic Pharmaceuticals segment is focused on emerging markets, with an emphasis on BRIC countries (Brazil, Russia, India, and China). For the quarter Q3-2019, Abbott met analysts’ expectations with a sales growth of 7.6% on an organic basis (5.5% reported) and adjusted diluted earnings per share (EPS) of 84 cents (53 cents reported), an increase of 12% … About Abbott: Abbott is a global healthcare leader that helps people live more fully at all stages of life. Similar to the Nutrition segment, the Diagnostics segment has seen significant operating margin improvements over the last several years. Dividend Payout: $4.72/share per year. Over the course of a varied career, he has also been a radio newscaster, an investment banker, and a bass player in a selection of rock and roll bands. ABT was recently trading at $85.7 down $3.06 from its 12-month high and $20.26 above its 12-month low. The new payout will be distributed on Feb. 16 to stockholders of record as of Jan. 15. The company’s high-quality product portfolio and the acquisition of St. Jude should fuel strong growth for the next several years. Abbott Laboratories: Emerging Market Health Care No-Fee DRIP Dividend Aristocrat Abbott Laboratories is one of the largest and most respected health care corporations in the world. The company has paid dividends for 95 straight years and raised its dividend for 47 consecutive years. The company’s R&D expense over the last several years is shown below: Abbott Laboratories’ investment in research & development show that the company is willing to play the long game, building out its product pipeline and improving its long-term business growth prospects. The company is a dividend aristocrat which has increased distributions for 38 years in a row. Dividend aristocrats have increased dividends for at least 25 consecutive years. Since the beginning of 2015, its distribution has nearly doubled, from $0.24 per share to the current level. Abbott Laboratories said Wednesday that its at-home BinaxNOW COVID-19 rapid COVID-19 test has been issued Emergency Use Authorization by the Food and Drug Administration. Abbott ABT, -0.21% said Friday its board has raised its quarterly dividend by 25% to 45 cents a share. Cumulative Growth of a $10,000 Investment in Stock Advisor, Dividend Aristocrat Abbott Laboratories Hikes Dividend by 25% @themotleyfool #stocks $ABT, 2 Perfect Stocks For Low-Risk Investors in 2021, This Dividend Aristocrat Just Gave Investors a Great Early Christmas Gift, Better Buy: Abbott Laboratories vs. DexCom, 3 Coronavirus Stocks With Long-Term Growth Potential. Abbott Laboratories is currently trading at $84 per share. The company operates in four main segments: The company’s Nutrition Products segment is characterized by market leadership. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Cory Renauer owns shares of Abbott Laboratories and Medtronic. Abbott Laboratories (ABT) is a dividend aristocrat with a long track record of paying dividends dating back to 1924. This is a fairly low expected rate of return, due to the overvaluation of the stock at the present time. Compare. You generally have to buy full shares of the dividend aristocrats… In February of 2010 Abbott … Robert Ford, Abbott’s President and COO, will become CEO on March 31st, 2020 and Mr. White will remain Executive Chairman. This would make the individual a … The increase in dividend growth is a good sign. Abbott is a Dividend Aristocrat, one of just 65 S&P 500 index components that has lifted its disbursement at least once annually for a minimum of 25 years running. Abbott Laboratories stock is an interesting pick for income investors because it has a long track record of rock-solid dividend payments and a history of dividend growth. You can invest in dividend aristocrats on most traditional and online brokerages. Abbott is a Dividend Aristocrat, one of just 65 S&P 500 index components that has lifted its disbursement at least once annually for a minimum of 25 years running. Abbott Laboratories(NYSE:ABT): Health care providers Novartis (NVS) and Abbott (ABT) have been performing well amid the COVID-19 coronavirus health crisis. Dividends are an important part of Abbott’s heritage and investment identity. The company has also raised its dividend for over 40 consecutive years. The hike was considerable -- a 25% boost to $0.45 per share. I also disagree with the Dividend Aristocrats committee in adding Amcor (AMCR). Using this price combined with the midpoint of the company’s guidance for adjusted earnings-per-share of $3.24 gives the stock a price-to-earnings ratio of 25.9. A native New Yorker, he currently lives in Los Angeles. The other major component of Abbott Laboratories’ future total returns will be the company’s earnings-per-share growth. Abbott Labs is a giant pharmaceutical corporation that has consecutively raised its dividend for 48 years in a row. Given the company’s innovative product line, ability to grow during difficult economic times and ability to add quality businesses to its core, we feel that a fair price-to-earnings ratio of 20 is appropriate. For income investors looking to generate more income as part of a dividend capture strategy, a security must be purchased one day before the ex-dividend date to capture the dividend payout. Abbott Labs (ABT) is a true dividend aristocrat with a lengthy 45-year streak of dividend increases. While the company’s current valuation exceeds its long-term average, Abbott Laboratories remains a strong hold and we recommend that investors buy this high-quality stock on any notable dips. Image source: Getty Images. The stock currently has a dividend yield of 1.57% and the stock has gained 22% on the year. For more information on how the split affected Abbott Labs’ dividend click here. The company’s Diagnostics segment is geographically more diverse than the Branded Generic Pharmaceuticals segment. Abbott Laboratories (ABT) was founded in 1888 and has grown to reach a market cap of more than $67 billion. At … Abbott Laboratories (ABT) is a dividend aristocrat paying over 25+ years of dividend. Click here to download your Dividend Aristocrats Excel Spreadsheet List now. ABT vs. JNJ Similar businesses. ABT has been impressive. Market data powered by FactSet and Web Financial Group. Click here to download your Dividend Aristocrats Excel Spreadsheet List now. While Abbott is a dividend aristocrat, Owens & Minor is a speculative buy. Four Decades of Dividend Growth for ABT stock. The article Abbott Laboratories or Johnson & Johnson: Which Dividend Aristocrat is a Better Buy? In 2007, Altria was kicked off the Dividend Aristocrats list after it spun-off Kraft foods. This is thanks in part since it was spun off from Abbott Labs, a company that has increased its d ividends for 47 straight years. Abbott ranks as one of the biggest healthcare stockson the market. Abbott Laboratories has many of the characteristics of an appealing dividend investment. Shauvik Haldar Jul 08, 2019 There are many securities going ex-dividend this week starting Monday, July 8. The company maintains a diversified mix of healthcare products that are sold around the world. Updated on November 21st, 2019 by Nate Parsh. Abbott has declared 388 consecutive quarterly dividends since 1924 and has increased the dividend payout for 49 consecutive years. Dividend Aristocrats Dow 30 Dividend Champions Most Watched Best Dividend Capture Stocks Top-Rated Dividends Overall Dividend Quality Most Reliable Payout Ratios Most Reliable Earnings Growth Highest Safe Dividend Yields Most Reliable Valuations Best Price Momentum Upgrades & Downgrades Overall Dividend Quality MLPs, REITs, Prefs, Foreign Master Limited Partnerships (MLPs) Preferred … The company's recent increases have been relatively generous, although usually not this high. Admittedly, ABT is one of the dividend aristocrats with valuation concerns. The health care company has raised its dividend for 49 … Abbott Labs' at-home, $25 rapid COVID-19 test gets EUA from FDA. For the last reported quarter, Abbott came out with earnings of $0.98 per share versus the Zacks Consensus Estimate of $0.90 per share, representing a surprise of 8.89%. But let’s find out which of these two stocks is a better buy now. Returns as of 01/06/2021. Abbott Laboratories (ABT) is a very well-known dividend growth stock, and for good reason. Abbott Laboratories might work out as a great income investment. This is particularly true for its Branded Generic Pharmaceuticals segment. The company was founded in 1888 and is headquartered in Lake Bluff, Illinois. A member of the S&P Dividend Aristocrats group, Abbot once again increased its annual dividend payout to $1.60 this year, which equals a 3.62% dividend yield at ABT's current $44.22 price/share. But, Abbott’s dividend history is impressive. This proportion is expected to reach 16.7% in 2050. ABT Stock Is a Healthy Dividend Aristocrat. Abbott is a member of the S&P 500 Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for 25 consecutive years. It's a great addition to portfolios at these levels. Find more details information on this page. ABT stock has plenty of room to grow. "The increase reflects the strength and momentum of Abbott's diversified business and our ability to invest in future growth while returning immediate value to shareholders.". Abbott is a Dividend Aristocrat, one of just 65 S&P 500 index components that has lifted its disbursement at least once annually for a minimum of 25 years running. It also has a long history of steadily increasing dividend payments. On Friday, Abbott Laboratories (NYSE:ABT) undertook its long-standing annual ritual and raised its quarterly dividend. Copyright, Trademark and Patent Information. In 2018, the percent of the global population that exceeded age 65 was 8.9%. AT&T, Abbott Labs and AbbVie Go Ex-dividend This Week. While right now may not be the best time to purchase shares of Abbott, investors should look for any meaningful downturn in the share price as a buying opportunity, given the high-quality nature of the business model. Dividend Aristocrat Abbott Laboratories Hikes Dividend by 25%. Abbott Laboratories’ has traded with an average price-to-earnings ratio of 19.9 over the past five years. S&P Global (NYSE:SPGI) is a true outlier among stocks in the financial sector, with its … Abbott Laboratories has been a great buy for many years. The first is the aging population, both domestically and within the United States. Abbott Laboratories engages in the discovery, development, manufacture, and sale of health care products worldwide. The healthcare stock has made investors rich in a number of ways. Eric has been writing about stocks and finance since the mid-1990s, when he lived in Prague, Czech Republic. Moreover, the segment’s performance has improved considerably in recent years as operating margin has improved in each and every year since 2011. How to Invest in Dividend Aristocrats. 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