ABT - Abbott Laboratories: Buying More Of This Top-Notch Dividend Growth Stock

2024-05-18 07:30:00 ET

Summary

• Abbott Laboratories is one of the smaller holdings in my portfolio, but that won't be the case for much longer.
• Strength throughout the base business powered the company's sales higher in the first quarter.
• ABT's interest coverage ratio approached 25 in the most recent quarter, which supports an AA- credit rating from S&P.
• Shares of the healthcare juggernaut could be trading at an 8% discount to fair value.
• ABT may be positioned for double-digit annual total returns for the foreseeable future.

For my money, the name of the game in dividend growth investing is to buy best-of-breed companies operating in industries with favorable growth tailwinds. That's because this can help a company deliver the sales and profit growth that is necessary to support a rising payout to shareholders.

Well, few growth trends are as powerful as healthcare. As medical treatments advance, the world ages, and grows in population/wealth, the demand curve for healthcare is moving up and to the right....

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