Dividends & Decorum: A Rather Sensible Portfolio

One does so loathe discussing money, of course. But a little financial prudence, especially in these terribly uncertain times, is hardly amiss. The notion of earning whilst one sleeps is, frankly, rather delightful, and investing in dividend stocks offers a perfectly reasonable path to achieving just that. Though, choosing wisely amongst the plethora of options is, naturally, the trick. One simply must avoid the spectacularly unsound.

If a steady stream of passive income for, oh, the next few decades appeals, one requires companies unlikely to succumb to the rather vulgar habit of suspending their dividend programs. Abbott Laboratories (ABT 0.23%) and Medtronic (MDT +1.71%) present themselves as possessing a certain…sturdiness. Let’s examine, shall we?

Boring, But Blessedly Reliable

Abbott and Medtronic aren’t exactly setting the world alight with innovation, are they? No dazzling tech trends here, no breathless anticipation of the next silicon revolution. Rather, they specialize in the decidedly unglamorous, but undeniably essential, business of medical devices. And frankly, one finds a certain comfort in that. Abbott, for instance, dabbles in everything from diagnostics to nutrition, a remarkably diversified portfolio. Their diabetes care unit, and structural heart segment, are particularly…competent.

The FreeStyle Libre continuous glucose monitoring system is, by all accounts, quite effective. And the MitraClip, a clever little device for treating mitral valve regurgitation, is a triumph of minimally invasive engineering. One suspects there are numerous other examples, though detailing them all would be dreadfully tedious. Abbott consistently delivers, and the FreeStyle Libre offers a rather promising trajectory for continued growth. A most sensible prospect.

Medtronic, too, boasts an impressively deep bench of therapeutic areas. Their recent financial results are, if not exactly thrilling, certainly…acceptable. They pioneered pulse field ablation technology, a relatively new approach to treating heart problems. And their foray into robotic-assisted surgery, with the Hugo system, is a potentially lucrative venture, assuming it doesn’t prove to be a ghastly failure. Both companies, one observes, possess a certain resilience to economic downturns. Their innovative capabilities, and extensive product lines, ensure a steady stream of new offerings. Qualities, naturally, one desires in a dividend stock.

Dividend Dynasties, Of Sorts

Will either Abbott or Medtronic suddenly decide to abandon their dividend programs? One rather doubts it. Medtronic, you see, is a “Dividend King” – a company with at least fifty consecutive years of dividend increases. An astonishing feat, really. It speaks volumes about the strength of their business. One of the safer bets on the market, wouldn’t you agree? Abbott isn’t quite as…regal, but they’re not far behind. Forty-eight consecutive years of dividend hikes, and poised to join the ranks of the Dividend Kings within a couple of years.

This, one presumes, provides further evidence that both Medtronic and Abbott Laboratories are capable of delivering consistent, growing dividends for decades to come. A most reassuring thought, wouldn’t you say? One can, at least, sleep soundly knowing one’s investments aren’t likely to vanish overnight. A rare and precious commodity these days.

2026-01-22 13:33

Boring, But Blessedly Reliable

Dividend Dynasties, Of Sorts

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