Abbott Laboratories: A ‘Must-Have’ In A Defensive Dividend Growth Portfolio


  • In 2023, AI and the Magnificent 7 took the lead, leaving non-tech blue chip companies trailing behind in the rearview mirror.
  • Abbott Laboratories had a difficult last three years, with its stock price trading sideways as sales driven by COVID-19 plummeted.
  • Yet, Abbott operates a recession-proof business model with long-term tailwinds, its core business growing at double digits.
  • I expect 2024 to mark a return to high-quality dividend growers as rates decrease and cash deposits no longer yield desirable returns.
  • Abbott is a defensive business poised for high single-digit returns, boasting a 1.83% yield and double-digit DGR.
Science Laboratory With Microscopes, Computers And Laboratory Equipments


As we wind down to the end of 2023, it’s safe to say this year has been quite a ride. It caught many, myself included, by surprise in terms of market expectations and the performance of various companies. While the (

Sales Q3 2023 Sales % Of Total

Medical Devices

4,249 41.9 %


2,449 24.1 %

Nutritional Products

2,073 20.4 %

Established Pharmaceuticals

1,368 13.6 %

Fiscal Year 2023 2024 2025 2026 2027
Revenue (b) $ 40.1 $ 41.7 $ 44.7 $ 47.3 $ 50.1
Revenue Growth -8.2% 4.0% 7.1% 5.8% 6.1%
EPS $ 4.43 $ 4.62 $ 5.13 $ 5.56 $ 6.04
EPS Growth -17.1% 4.3% 11.0% 8.4% 8.6%
Forward PE 23.5 24.0 25.0 25.0 25.0
Stock Price $ 104 $ 111 $ 128 $ 139 $ 151

Analyst’s Disclosure: I/we have a beneficial long position in the shares of ABT, ABBV, MSFT, GOOG, SPY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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