Up to date on January twenty eighth, 2026 by Nathan Parsh
Abbott Laboratories (ABT) is a really well-known dividend development 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 finest dividend shares to purchase and maintain for the long-term.
With this in thoughts, we created a full listing of all 69 Dividend Aristocrats. You’ll be able to obtain the total listing, together with necessary monetary metrics corresponding to dividend yields and price-to-earnings ratios, by clicking on the hyperlink beneath:
Disclaimer: Certain Dividend is just not affiliated with S&P International in any manner. S&P International owns and maintains The Dividend Aristocrats Index. The data on this article and downloadable spreadsheet is predicated on Certain Dividend’s personal overview, abstract, and evaluation of the S&P 500 Dividend Aristocrats ETF (NOBL) and different sources, and is supposed to assist particular person traders higher perceive this ETF and the index upon which it’s based mostly. Not one of the data on this article or spreadsheet is official knowledge 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 development 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 major segments: Dietary Merchandise, Established Prescription drugs, Diagnostics, and Medical Gadgets. Abbott enjoys a management place throughout product segments.
The corporate’s Diet Merchandise section is a prime 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 development 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 fall, U.S. gross sales grew 0.9% whereas worldwide was larger by 6.7%. Forex alternate was a 1.4% headwind for the interval.
Firm-wide natural gross sales development was 6.7% for the 12 months. Excluding Covid-19 testing associated gross sales, natural development totaled 3.8% for the fourth quarter. Diet 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 Prescription drugs grew 9% because of 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 have been up 13.7%.
Progress was pushed by excessive demand for merchandise in Diabetes Care, , Rhythm Administration, Coronary heart Failure, and Electrophysiology.
Abbott Laboratories offered steerage for 2026 as effectively, with the corporate anticipating adjusted earnings-per-share in a variety of $5.55 to $5.80 for the 12 months. On the midpoint, this might signify development of 10.3% from 2025..
Progress 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 effectively since then.
Earnings-per-share have a CAGR of 9.9% since 2016, however the development fee slows to 1.7% when trying on the final 5 years.
With its robust place in development markets corresponding 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 enticing long-term development charges for each earnings-per-share and dividends.
Trying forward, Abbott Laboratories has two main development prospects that may assist its enterprise to turn out to be 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 share 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 may profit Abbott Laboratories. That is notably true for its Branded Generic Prescription 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 somewhat 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 development over the following 5 years for ABT.
Aggressive Benefits & Recession Efficiency
Abbott Laboratories’ aggressive benefit is twofold. The primary element is its outstanding model recognition amongst client medical merchandise, notably in its Diet section.
Led by noteworthy merchandise just like the Guarantee meal substitute complement, Abbott Laboratories’ manufacturers permit its gross sales to face robust via even the worst financial recessions.
Abbott’s second aggressive benefit element is its give attention to analysis and growth. Its funding in analysis & growth reveals that the corporate is keen to play the lengthy sport, constructing out its product pipeline and bettering its long-term enterprise development prospects.
As a big, diversified healthcare enterprise, Abbott Laboratories is awfully recession-resistant. The corporate truly elevated its adjusted earnings-per-share throughout every year 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 troublesome time durations on report.
On the similar time, the corporate’s share depend elevated. Because of this Abbott Laboratories didn’t use share repurchases to develop earnings-per-share, they have been merely extra worthwhile throughout a tumultuous time.
We count on this recession-resistant Dividend Aristocrat to carry out equally effectively throughout future downturns within the enterprise surroundings.
From a dividend perspective, Abbott Laboratories’ dividend additionally seems very protected. ABT has an anticipated dividend payout ratio barely beneath 50% for 2026.
Valuation & Anticipated Complete Returns
Utilizing the midpoint of the corporate’s steerage 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} truthful price-to-earnings ratio of twenty-two is extra acceptable within the present surroundings. If the valuation a number of expands to our truthful worth estimate of twenty-two by 2031, then valuation could be a 3.0% enhance to annual returns over this era.
The opposite main element of Abbott Laboratories’ future whole returns would be the firm’s earnings-per-share development. We count on this development to proceed, and traders can fairly count on 7% in annual adjusted earnings-per-share development shifting ahead.
Lastly, Abbott’s whole returns will probably be boosted by the corporate’s dividend funds. ABT inventory has a present dividend yield of two.3%.
Complete anticipated annual returns are forecasted at 12.3% via 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 via 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 thinking about discovering high-quality dividend development shares appropriate for long-term funding, the next Certain Dividend databases will probably be helpful:
The Dividend Kings Listing: thought-about to be the best-of-the-best amongst dividend development shares, the Dividend Kings are a gaggle of remarkable dividend shares with 50+ years of consecutive dividend will increase.
The Blue Chip Shares Listing: incorporates shares on both the Dividend Achievers, Dividend Aristocrats, or Dividend Kings listing.
The Month-to-month Dividend Shares Listing: incorporates shares that pay dividends every month, for 12 funds per 12 months.
The Excessive Dividend Shares Listing: excessive dividend shares are suited to traders that want earnings now (versus development later) by itemizing shares with 5%+ dividend yields.
The most important home inventory market indices are one other strong useful resource for locating funding concepts. Certain Dividend compiles the next inventory market databases and updates them month-to-month:
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