Abbott Labs: A Dividend King’s Mild Mishigas

Alright, settle in, folks. Abbott Labs (ABT 1.10%) just reported earnings, and the market… well, let’s just say it threw a bit of a hissy fit. Nearly 10% down? Oy vey! It’s like they expected a miracle cure for… everything. But hold your horses. This isn’t a tragedy; it’s a temporary bit of indigestion for a company that’s been handing out dividends longer than I’ve been… well, let’s not go there. They’re a Dividend King, see? Fifty-four years of increasing payouts. That’s not chump change. That’s like, the royalty of reliable income.

Now, I’m not saying this stock is a guaranteed get-rich-quick scheme – if you’re looking for that, I suggest investing in carrier pigeons. But I am saying it deserves a closer look, especially after this little dip. So, let’s get down to brass tacks, shall we? Here are three reasons why I think you should consider adding Abbott Labs to your portfolio, before the market remembers what a good company this is.

1. The Market Overreacted. A Little. Okay, Maybe a Lot.

So, they missed revenue expectations by a few bucks – $11.5 billion reported versus $11.8 billion expected. Big deal! It’s like complaining that your caviar isn’t quite salty enough. The nutrition segment had a bit of a stumble. Apparently, people are starting to notice prices are going up. Who knew? CEO Robert Ford pointed out that higher manufacturing costs led to higher prices, and that’s suppressing demand. It’s basic economics, people! Though, I suspect a rogue squirrel hoarding all the raw materials might be involved.

But the market acted like Abbott discovered the secret to turning lead into gold… and then lost the instructions. Let’s not forget, adjusted earnings per share jumped 12% year-over-year, meeting estimates. And management is already working on fixing the nutrition business. They expect a turnaround in the second half of 2026. That’s right, folks, a turnaround! It’s like a perfectly timed pratfall – you expect it, but it’s still funny.

2. 2026 is Looking Up. Seriously.

Speaking of 2026, Abbott’s projecting overall revenue growth to accelerate. They’re talking 6.5% to 7.5% organic sales growth, up from 5.5% in 2025. And adjusted earnings per share? $5.55 to $5.80. That’s a 10% year-over-year jump. It’s like watching a magician pull a rabbit out of a hat… except the rabbit is money. A very welcome rabbit.

This company is diversified, folks. They’ve got a portfolio of successful products longer than a borscht belt comedian’s setlist. Ford himself said they’re better positioned than anyone in terms of portfolio completeness. And I think he’s right. When it comes to medtech and diagnostics, they’re the full package. They’ve got everything but a trained seal.

3. A Game-Changing Acquisition is Brewing

And now, for the grand finale! Abbott expects to close its acquisition of Exact Sciences (EXAS 0.11%) in the second quarter of 2026. This isn’t just adding another product to the shelf; it’s like adding a whole new wing to the museum.

Ford believes this deal will “add a whole new growth vertical.” And I, for one, am inclined to agree. Acquiring Exact Sciences could be a game-changer, offering the opportunity to expand into early cancer detection. Early detection! Think of the possibilities! It’s like finding a winning lottery ticket… and then realizing you bought ten of them. It’s a beautiful thing, really.

2026-01-26 14:22

1. The Market Overreacted. A Little. Okay, Maybe a Lot.

2. 2026 is Looking Up. Seriously.

3. A Game-Changing Acquisition is Brewing

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