The first thing I do when I'm ready to make a purchase is go through my portfolio and look for names which are selling at a discount or at least what I interpret as fair value. None of my holdings really made the cut except for PBCT. However I put that on the back burner since the dividend growth has been disappointing to say the least.
I decided to look elsewhere outside of my portfolio instead and I opened a new position in Abbott Labs (ABT). I purchased 27 shares @ $39.40 for $1073.
Abbott Laboratories manufactures and sells health care products and medical equipment worldwide and has increased its dividend for 44 consecutive years. Abbott offers a safe and attractive dividend that should continue to grow over time. It's important to note that dividend growth could be a bit slower in the next couple of years however as Abbott has made some key acquisitions recently and they need to conserve cash. I view this as temporary however and growth should return in time.
Abbott Labs (ABT) Stock Chart
ABT Basic Stats
At first glance the anomaly in 2013 looks like a dividend cut but was simply due to the Abbvie (ABBV) spinoff and not actually a cut.
- Ticker Symbol: ABT
- Sector: Healthcare
- Yield: 2.6%
- Dividend Growth Streak: 44 years
- Dividend Growth 1yr: 8%
- Payout Ratio: 68%
- P/E Ratio: 25 (17 forward)
- Market cap:$61 Billion
- Website: http://www.abbott.com/
Congrats on the buy! Looks like a solid choice and as we discussed, a popular one lately. Nice work!
ReplyDeleteYa, I noticed it was in your top10 list for a while now.
DeleteGood job Captain! I have been buying ABT in several batches throughout the year. If those acquisitions are successful, then we have a true healthcare juggernaut here.
ReplyDeleteLets hope so, it sounds like the St. Jude acquisition is going to help ABT. I hope they don't get too crazy with the purchases though.
DeleteGreat pickup! I have been looking at them but I recently bought ABBV. They are on my watchlist though.
ReplyDeleteI think both will do well, I kinda wish they wouldn't have split like they did in the first place.
DeleteYou can't go wrong with ABT. They have a time and tested track record. I myself with for their spin off, ABV however as I felt it had a better current evaluation. I won't lie though, I've got my eye on ABT as well.
ReplyDeleteMost of that track record is in the combined company though, I'm hoping they can continue that strong track record going forward alone. Thx for stopping by Reaper!
DeleteNice buy Captain. ABT has been on my watchlist for a while. I haven't bought any shares yet, but I like the stock. Congrats on your purchase.
ReplyDeleteYa it's been on my watchlist for a while now, I just never pulled the trigger till now. Thx
DeleteA popular buy indeed. I added to my ABBV and ABT towards the end of June. Nice pick up.
ReplyDeleteI noticed that, I may actually end up buying both myself as well. Well see what happens.
DeleteNice purchase. I like ABT but think the market as a whole can correct a bit. I will wait for some weakness but will probably pick some up soon.
ReplyDelete