Abbott: Wait For A Better Entry Point


  • The number of children and teenagers in the United States diagnosed with type 2 diabetes could rise by as much as 675% by 2060, which boosts the market.
  • The dividend per share has risen steadily at 7.2% per year, and management is shareholder-friendly by buying back shares, further boosting the dividend per share.
  • In terms of valuation, I think the stock is a bit pricey compared to historical numbers and when considering the Fed’s interest rate hikes.
  • Several analysts expect a decline in earnings per share for 2023, which makes the P/E ratio a bit expensive, at 24.
  • The stock is certainly worth to buy because of its strong management, growing revenue and free cash flow, but I will wait until the share price is a bit lower in 2023.

Abbott Laboratories Sunnyvale Office



Abbott (NYSE:ABT) did good business during the corona pandemic by providing Covid tests. The stock has done well over the past 5 years, as its annual return is 15.6%.

Abbott’s shares generate income and equity returns. The dividend per

Data by YCharts

Abbott Financial Results - SEC and author's own graphical visualization

Abbott Financial Results (SEC and author’s own graphical visualization)

Business Unit Sales - Abbott 3Q22 Investor Presentation

Business Unit Sales (Abbott 3Q22 Investor Presentation)

Dividend Growth History - Seeking Alpha ABT Ticker Page

Dividend Growth History (Seeking Alpha ABT Ticker Page)

ABT Cash Flow highlights - SEC and author's own calculations

ABT Cash Flow highlights (SEC and author’s own calculations)

Data by YCharts

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

Leave a Reply

Your email address will not be published. Required fields are marked *