Dividend Aristocrats In Focus: Abbott Laboratories – Sure Dividend

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 motive. The corporate is a member of the unique Dividend Aristocrats, a bunch of elite dividend shares with 25+ years of consecutive dividend will increase.

We consider 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 possibly can obtain the total listing, together with essential monetary metrics reminiscent of dividend yields and price-to-earnings ratios, by clicking on the hyperlink under:

Disclaimer: Positive Dividend is just not affiliated with S&P World in any method. S&P World owns and maintains The Dividend Aristocrats Index. The knowledge on this article and downloadable spreadsheet relies on Positive Dividend’s personal evaluation, 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 based mostly. Not one of the data on this article or spreadsheet is official information from S&P World. Seek the advice of S&P World for official data.

Abbott is diversified throughout a number of areas of well being care, every of which has optimistic 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 principal segments: Dietary Merchandise, Established Prescription drugs, Diagnostics, and Medical Units. Abbott enjoys a management place throughout product segments.

The corporate’s Vitamin Merchandise phase is a high pediatric diet supplier in america and another geographies.

Abbott Laboratories’ final phase is the Medical Units 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 autumn, U.S. gross sales grew 0.9% whereas worldwide was larger by 6.7%. Forex trade 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. 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 Prescription drugs grew 9% as a consequence of ongoing energy in India, Latin America, and the Center East.

Medical Units 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%.

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 nicely, 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 could signify development 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 nicely since then.

Earnings-per-share have a CAGR of 9.9% since 2016, however the development price slows to 1.7% when wanting on the final 5 years.

With its sturdy place in development markets reminiscent of diagnostics, the place Abbott Laboratories is the market chief in point-of-care diagnostics – and cardiovascular medical units, Abbott Laboratories ought to have the ability to generate engaging long-term development charges for each earnings-per-share and dividends.

Wanting forward, Abbott Laboratories has two main development prospects that can assist its enterprise to grow to be more and more extra worthwhile through the years to return.

The primary is the growing old inhabitants, each domestically and inside america. In 2024, the share of the worldwide inhabitants that exceeded the age of 65 was 10%, double what it was within the 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 Prescription drugs phase.

This phase focuses on many international locations that spend a really small proportion of their total GDP on healthcare, a price that’s anticipated to extend sooner or later.

The growing old home inhabitants mixed with the slightly 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 anticipate 7% annual EPS development over the subsequent 5 years for ABT.

Aggressive Benefits & Recession Efficiency

Abbott Laboratories’ aggressive benefit is twofold. The primary element is its exceptional model recognition amongst client medical merchandise, significantly in its Vitamin phase.

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 element is its give attention to analysis and growth. Its funding in analysis & growth reveals that the corporate is prepared to play the lengthy recreation, constructing out its product pipeline and enhancing its long-term enterprise development prospects.

As a big, diversified healthcare enterprise, Abbott Laboratories is awfully recession-resistant. The corporate really 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% enhance)
• 2009 earnings-per-share of $3.72 (22.8% enhance)
• 2010 earnings-per-share of $4.17 (12.1% enhance)

Remarkably, Abbott Laboratories managed to develop its earnings-per-share in the course of the world monetary disaster – probably the most economically tough time intervals on report.

On the identical time, the corporate’s share rely 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 anticipate this recession-resistant Dividend Aristocrat to carry out equally nicely throughout future downturns within the enterprise setting.

From a dividend perspective, Abbott Laboratories’ dividend additionally seems very protected. ABT has an anticipated dividend payout ratio barely under 50% for 2026.

Valuation & Anticipated Complete Returns

Utilizing the midpoint of the corporate’s steering for the 12 months provides 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 applicable within the present setting. If the valuation a number of expands to our truthful worth estimate of twenty-two by 2031, then valuation can be a 3.0% increase to annual returns over this era.

The opposite main element of Abbott Laboratories’ future complete returns would be the firm’s earnings-per-share development. We anticipate this development to proceed, and buyers can moderately anticipate 7% in annual adjusted earnings-per-share development transferring ahead.

Lastly, Abbott’s complete 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% by 2030.

Last 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 an extended historical past of steadily growing dividend funds.

With anticipated returns above 12% per 12 months, we price Abbott Laboratories a purchase proper now.

If you’re fascinated by discovering high-quality dividend development shares appropriate for long-term funding, the next Positive Dividend databases will probably be helpful:

• The Dividend Kings Checklist: thought of to be the best-of-the-best amongst dividend development shares, the Dividend Kings are a bunch of remarkable dividend shares with 50+ years of consecutive dividend will increase.
• The Blue Chip Shares Checklist: accommodates shares on both the Dividend Achievers, Dividend Aristocrats, or Dividend Kings listing.
• The Month-to-month Dividend Shares Checklist: accommodates shares that pay dividends every month, for 12 funds per 12 months.
• The Excessive Dividend Shares Checklist: excessive dividend shares are suited to buyers that want revenue 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. Positive Dividend compiles the next inventory market databases and updates them month-to-month: