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ABT Returns Almost Double the S&P 500’s Year-to-Date Gain

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Abbott Laboratories surpassed the S&P 500’s gains

As of September 19, Abbott Laboratories (ABT) has registered a rise of ~17% YTD (year-to-date). In the same period, the S&P 500 has risen ~8%.

Abbott Laboratories has clearly surpassed the market’s returns so far in 2018. Over the last 12 months, ABT has risen ~34%, which is well ahead of the S&P 500’s return of ~16% over the same period.

Apart from Abbott Laboratories’ stellar stock returns, it has been paying consistent dividends to its shareholders. Recently, the company announced its 379th consecutive quarterly dividend. It’s consistently been paying increasing dividends to its shareholders for the past 46 years. The company’s strong stock performance and consistent dividend payment record suggest that its stock is a strong bet for investors seeking capital appreciation as well as income through dividends.

Abbott Laboratories stock is more volatile than the market, as reflected by its beta of 1.5 on September 19. A beta of higher than 1 suggests that a stock is more volatile than the market, and vice versa.

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Industry and peer comparison

As of September 19, Abbott Laboratories’ peers Boston Scientific (BSX), Medtronic (MDT), and Edwards Lifesciences (EW) had generated returns of 30%, 19%, and 33.2%, respectively, over the last 12 months. The YTD returns of these stocks stand at 47.5%, 17.4%, and 33%, respectively.

The Health Care Select Sector SPDR ETF (XLV) and the iShares US Medical Devices ETF (IHI) have risen ~12% and ~25%, respectively, YTD. This trend suggests that Abbott Laboratories has surpassed the US healthcare sector but lagged behind the average stock performance of the US medical device industry in 2018.

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