Abbott's Growth and Dividends Make It a Smart Portfolio Pick

Core Insights - Abbott Laboratories is recognized for its consistent market-beating returns, ranking as the 11th top-returning stock since 1937 and the top in the healthcare sector [1] - The company demonstrates steady growth and capital returns, supported by dividends and share repurchases, which contribute to reducing portfolio risk [2] Financial Performance - In Q3, Abbott reported a 4.9% growth, surpassing consensus forecasts, with organic growth at 8.2%, driven by a strong medical device segment [3] - Medical Devices segment grew by 11.7% reported and 13.3% organically, highlighting the strength in Structural Heart and Heart Failure products [3] - Established Pharmaceuticals grew by 2.7% reported and 7% organically, while Nutrition and Diagnostics faced declines [3] Margins and Earnings - Operating and net margins widened slightly year-over-year, with operating earnings up 12.8% and net operating earnings up 14.6% [4] - Adjusted fully diluted EPS reached $1.21, reflecting a 6$4.67, slightly above the $4.66 consensus [4] Capital Returns - Abbott has a strong capital return history with a 53-year record of annual increases and a low payout ratio below 50$7 billion repurchase authorization [5] Analyst Sentiment - Analysts show strong support for Abbott, with a consensus rating of Moderate Buy and a price target of $125, indicating about 10$143, which could represent a new all-time high [6] Market Dynamics - Following the earnings release, Abbott's share price experienced a slight pullback, but analysts believe this could present a buying opportunity [7] - Critical support is identified near $115, and maintaining support above this level could lead to new highs before year-end [7]