Abbott Laboratories’ Dividend Growth and Payout Potential in 2017


Jul. 17 2017, Updated 6:38 a.m. ET

Quarterly cash dividend

Abbott Laboratories (ABT) announced a quarterly cash dividend of $0.265 per share on June 9, 2017. The dividend should be payable on August 15, 2017, to shareholders of record on July 14, 2017. This payout will mark the 374th consecutive dividend paid to shareholders for the last 45 years. The dividend amount is the same as Abbott’s previous quarter dividend payment. It compares to the quarterly dividend of $0.26 per share in 4Q16.

The annual dividend to be paid to Abbott’s shareholders is $1.06 per share for fiscal 2017. Abbott Laboratories paid $460 million in dividends in 1Q17, which compares to ~$385 million in dividends paid out in 1Q16.

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ABT’s dividend payment strategy

Abbott Laboratories has been paying consistently increasing dividends to shareholders for the last 45 years. Abbott Laboratories is also a dividend aristocrat—a company that has been paying consistently increasing dividends to shareholders for at least 25 years.

Abbott Laboratories’ dividend payout ratio stands at 145.5%, and it offers a dividend yield of 2.2. Its five-year growth rate for dividends is -11.2%.

Becton Dickinson (BDX), Medtronic (MDT), and Johnson & Johnson (JNJ) are also some of the dividend aristocrats among big healthcare companies in the US medical technology sector. Becton Dickinson, Medtronic, and Johnson & Johnson have dividend yields of ~1.5,~2.1, and ~2.6, respectively.

Investors looking to invest in dividend-focused companies but diversify company-specific exposure could consider the Vanguard Dividend Appreciation ETF (VIG), which invests ~2.3% of its holdings in ABT.


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