ABBOTT PARK, Ill. - Abbott (NYSE: ABT) has declared a quarterly common dividend of 55 cents per share, continuing its long history of consistent shareholder payouts. The upcoming dividend, announced Thursday, is part of a series that dates back to 1924, marking the 403rd consecutive quarterly dividend issued by the company.
The declared dividend is scheduled for payment on November 15, 2024, to shareholders who are on record as of October 15, 2024. This announcement underscores Abbott's position as a consistent dividend-paying entity, with a track record of increasing its dividend payout for 52 consecutive years. The company's performance in this area has earned it a place in the S&P 500 Dividend Aristocrats Index, a prestigious index that includes companies known for raising their dividends annually for at least 25 years.
Abbott is recognized as a global healthcare leader, offering a diverse portfolio that includes diagnostics, medical devices, nutritionals, and branded generic medicines. The company's reach extends to over 160 countries, where it aims to improve the quality of life for patients through its innovative technologies.
As a member of the Dividend Aristocrats Index, Abbott stands among other companies that have demonstrated a commitment to delivering shareholder value through regular, reliable dividend increases. This practice is often seen as a sign of a company's financial health and stability, as well as its dedication to managing capital in a way that benefits its investors.
The information for this report is based on a press release statement from Abbott.
In other recent news, Abbott Laboratories (NYSE:ABT) reported robust second-quarter earnings and revenue, primarily driven by the Medical Devices segment. The company's earnings per share of $1.14 surpassed expectations, and revenues reached $10.38 billion. Consequently, Abbott revised its full-year revenue guidance to an organic growth range of 9.5%-10% and raised its EPS guidance to $4.61-$4.71 from the previous $4.55-$4.70 range.
In product developments, Abbott launched its over-the-counter continuous glucose monitoring system, Lingo, in the U.S., expanded its Pure Bliss by Similac line to include new organic infant formulas, and entered a global partnership with Medtronic (NYSE:MDT) to develop a continuous glucose monitoring system.
Piper Sandler initiated coverage on Abbott Laboratories stock with an Overweight rating and a price target of $131, noting the company's strong execution despite ongoing litigation related to necrotizing enterocolitis. Other analyst firms including Jefferies and BTIG also maintained positive outlooks on Abbott, citing the strength of the company's diversified portfolio.
Lastly, Abbott is facing legal challenges with nearly 1,000 lawsuits filed against the company and British firm Reckitt Benckiser (LON:RKT), alleging failure to adequately warn healthcare providers of increased disease risks when using their infant formula. These are recent developments for Abbott Laboratories.
InvestingPro Insights
Abbott's (NYSE: ABT) recent declaration of a 55-cent quarterly dividend is a testament to its robust financial standing and commitment to rewarding shareholders. The company's consistent dividend payout history is backed by a solid financial performance, as seen in the InvestingPro data, which shows a market capitalization of $197.37 billion and a healthy gross profit margin of 55.47% over the last twelve months as of Q2 2024.
InvestingPro Tips reveal that Abbott has not only maintained its dividend payments for an impressive 54 consecutive years but has also raised its dividend for 10 consecutive years. This pattern of shareholder value creation is further supported by the company's moderate level of debt and its capability to cover interest payments with cash flows, highlighting its financial prudence and stability.
While Abbott is trading at a high earnings multiple with a P/E ratio of 35.73, it is important to note that analysts predict the company will be profitable this year. The company's stock generally trades with low price volatility, which might be appealing for investors seeking stable investment options in the Healthcare Equipment & Supplies industry, where Abbott is a prominent player.
For those looking to delve deeper into Abbott's financial health and future prospects, InvestingPro offers additional tips that can provide a more comprehensive analysis. Currently, there are 11 more tips available, which can be accessed for further guidance on the company's performance and potential investment opportunities.
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