Up to date on January twenty eighth, 2026 by Nathan Parsh
Abbott Laboratories (ABT) is a really well-known dividend progress inventory, and for good purpose. The corporate is a member of the unique Dividend Aristocrats, a gaggle of elite dividend shares with 25+ years of consecutive dividend will increase.
We imagine the Dividend Aristocrats are among the many greatest dividend shares to purchase and maintain for the long-term.
With this in thoughts, we created a full record of all 69 Dividend Aristocrats. You’ll be able to obtain the total record, together with necessary monetary metrics comparable to dividend yields and price-to-earnings ratios, by clicking on the hyperlink beneath:
Disclaimer: Positive Dividend is just not affiliated with S&P International in any method. S&P International owns and maintains The Dividend Aristocrats Index. The knowledge on this article and downloadable spreadsheet relies on Positive Dividend’s personal evaluate, abstract, and evaluation of the S&P 500 Dividend Aristocrats ETF (NOBL) and different sources, and is supposed to assist particular person buyers higher perceive this ETF and the index upon which it’s primarily based. Not one of the data on this article or spreadsheet is official information from S&P International. Seek the advice of S&P International for official data.
Abbott is diversified throughout a number of areas of well being care, every of which has constructive long-term progress potential. This has fueled Abbott’s spectacular historical past and can proceed to take action within the years forward.
This text will focus on the funding prospects of Abbott Laboratories intimately.
Enterprise Overview
Abbott Laboratories is a diversified healthcare company with a market capitalization of $188 billion. Based in 1888, it’s headquartered in Lake Bluff, Illinois.
The corporate operates in 4 predominant segments: Dietary Merchandise, Established Prescribed drugs, Diagnostics, and Medical Gadgets. Abbott enjoys a management place throughout product segments.
The corporate’s Vitamin Merchandise section is a high pediatric diet supplier in the USA and another geographies.
Abbott Laboratories’ final section is the Medical Gadgets unit. On December twelfth, 2025, Abbott Laboratories raised its quarterly dividend 6.8% to $0.63, extending the corporate’s dividend progress streak to 54 years.
On January twenty second, 2026, Abbott Laboratories launched fourth quarter and full 12 months outcomes. For the quarter, income grew 4.5% to $11.46 billion, however this missed estimates by $340 million. Adjusted earnings-per-share of $1.50 in comparison with $1.34 within the prior 12 months and was $0.01 higher than anticipated.
For the 12 months, income grew 5.7% to $44.3 billion whereas adjusted earnings-per-share of $5.15 in comparison with $4.67 in 2024.
For This autumn, U.S. gross sales grew 0.9% whereas worldwide was greater by 6.7%. Foreign money change was a 1.4% headwind for the interval.
Firm-wide natural gross sales progress was 6.7% for the 12 months. Excluding Covid-19 testing associated gross sales, natural progress totaled 3.8% for the fourth quarter. Vitamin decreased 8.9% as demand weakened following a rise in pricing.
Diagnostics was decrease by 2.5%%, however down simply 0.2% when excluding Covid-19 testing-related gross sales. Established Prescribed drugs grew 9% resulting from ongoing power in India, Latin America, and the Center East.
Medical Gadgets stays the highest performer as gross sales grew 12.3% for the quarter. The U.S. grew 10.7% and worldwide markets had been up 13.7%.
Development was pushed by excessive demand for merchandise in Diabetes Care, , Rhythm Administration, Coronary heart Failure, and Electrophysiology.
Abbott Laboratories offered steering for 2026 as properly, with the corporate anticipating adjusted earnings-per-share in a spread of $5.55 to $5.80 for the 12 months. On the midpoint, this may symbolize progress of 10.3% from 2025..
Development Prospects
Over time, Abbott Laboratories has proven the aptitude to develop its adjusted earnings-per-share reliably. In 2013, Abbott Laboratories spun off AbbVie (ABBV), and each companies have carried out properly since then.
Earnings-per-share have a CAGR of 9.9% since 2016, however the progress fee slows to 1.7% when trying on the final 5 years.
With its sturdy place in progress markets comparable to diagnostics, the place Abbott Laboratories is the market chief in point-of-care diagnostics – and cardiovascular medical gadgets, Abbott Laboratories ought to have the ability to generate engaging long-term progress charges for each earnings-per-share and dividends.
Trying forward, Abbott Laboratories has two main progress prospects that can assist its enterprise to turn into more and more extra worthwhile through the years to come back.
The primary is the growing older inhabitants, each domestically and inside the USA. In 2024, the proportion of the worldwide inhabitants that exceeded the age of 65 was 10%, double what it was within the Nineteen Seventies. This group is anticipated to quantity as a lot as 1.6 billion or 16% of the world’s inhabitants by 2050.
The corporate’s give attention to rising markets is the second broad tailwind that can profit Abbott Laboratories. That is significantly true for its Branded Generic Prescribed drugs section.
This section focuses on many international locations that spend a really small proportion of their general GDP on healthcare, a fee that’s anticipated to extend sooner or later.
The growing older home inhabitants mixed with the reasonably low give attention to healthcare spending in rising market international locations ought to go away Abbott Laboratories loads of room to develop for the foreseeable future.
We count on 7% annual EPS progress over the following 5 years for ABT.
Aggressive Benefits & Recession Efficiency
Abbott Laboratories’ aggressive benefit is twofold. The primary part is its outstanding model recognition amongst client medical merchandise, significantly in its Vitamin section.
Led by noteworthy merchandise just like the Guarantee meal substitute complement, Abbott Laboratories’ manufacturers permit its gross sales to face sturdy by even the worst financial recessions.
Abbott’s second aggressive benefit part is its give attention to analysis and improvement. Its funding in analysis & improvement reveals that the corporate is keen to play the lengthy recreation, constructing out its product pipeline and bettering its long-term enterprise progress prospects.
As a big, diversified healthcare enterprise, Abbott Laboratories is very recession-resistant. The corporate truly elevated its adjusted earnings-per-share throughout annually of the 2007-2009 monetary disaster.
2007 earnings-per-share of $2.84
2008 earnings-per-share of $3.03 (6.7% improve)
2009 earnings-per-share of $3.72 (22.8% improve)
2010 earnings-per-share of $4.17 (12.1% improve)
Remarkably, Abbott Laboratories managed to develop its earnings-per-share throughout the world monetary disaster – one of the economically tough time durations on report.
On the similar time, the corporate’s share rely elevated. Which means Abbott Laboratories didn’t use share repurchases to develop earnings-per-share, they had been merely extra worthwhile throughout a tumultuous time.
We count on this recession-resistant Dividend Aristocrat to carry out equally properly throughout future downturns within the enterprise surroundings.
From a dividend perspective, Abbott Laboratories’ dividend additionally seems very secure. ABT has an anticipated dividend payout ratio barely beneath 50% for 2026.
Valuation & Anticipated Whole Returns
Utilizing the midpoint of the corporate’s steering for the 12 months offers the inventory a price-to-earnings ratio of 19.0.
Abbott Laboratories’ price-to-earnings ratio has typically hovered between 20 and 25 over the previous 5 years. The present valuation is above the excessive finish of this vary.
We really feel {that a} honest price-to-earnings ratio of twenty-two is extra acceptable within the present surroundings. If the valuation a number of expands to our honest worth estimate of twenty-two by 2031, then valuation could be a 3.0% increase to annual returns over this era.
The opposite main part of Abbott Laboratories’ future whole returns would be the firm’s earnings-per-share progress. We count on this progress to proceed, and buyers can fairly count on 7% in annual adjusted earnings-per-share progress transferring ahead.
Lastly, Abbott’s whole returns can be boosted by the corporate’s dividend funds. ABT inventory has a present dividend yield of two.3%.
Whole anticipated annual returns are forecasted at 12.3% by 2030.
Remaining Ideas
Abbott Laboratories has many traits that make it an interesting dividend funding. Its recession-resistant enterprise mannequin permits it to proceed rising earnings-per-share by varied financial environments.
It additionally has a protracted historical past of steadily rising dividend funds.
With anticipated returns above 12% per 12 months, we fee Abbott Laboratories a purchase proper now.
In case you are serious about discovering high-quality dividend progress shares appropriate for long-term funding, the next Positive Dividend databases can be helpful:
The Dividend Kings Record: thought of to be the best-of-the-best amongst dividend progress shares, the Dividend Kings are a gaggle of outstanding dividend shares with 50+ years of consecutive dividend will increase.
The Blue Chip Shares Record: incorporates shares on both the Dividend Achievers, Dividend Aristocrats, or Dividend Kings record.
The Month-to-month Dividend Shares Record: incorporates shares that pay dividends every month, for 12 funds per 12 months.
The Excessive Dividend Shares Record: excessive dividend shares are suited to buyers that want earnings now (versus progress later) by itemizing shares with 5%+ dividend yields.
The foremost home inventory market indices are one other strong useful resource for locating funding concepts. Positive Dividend compiles the next inventory market databases and updates them month-to-month:
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