If you’re looking for healthy dividends in the healthcare industry, look no further Abbott Laboratories (NYSE: ABT). These companies are among the highest quality Dividend Kings not only in their industry; Both of them are capable of continuing to raise their dividends in the future. In fact companies are buying them, and there is an opportunity not only to buy these stocks, but at a time when a powerful tailwind is blowing.
Abbott Labs is crowned king of segmentation
Abbott Laboratories A well-known dividend lord It was crowned as a dividend king. The company has grown its dividend on a split- and spin-off-adjusted basis over 50 years, a very telling indicator for investors. The company has forward-looking management and the ability to withstand market downturns and come out strong.
That’s why companies own 73% of the company and buy more. These companies have been net buyers in 3 of the last 4 quarters, accumulating an additional $4.3 billion worth of stock during that time. That’s about 2.3% of the market cap, and helps the stock bottom out in the back half of 2022.
Abbott’s prices have fallen over the past few quarters due to the post-Covid blues. Covid-related testing and supplies still make up the bulk of revenue, but the good times are over and sales are declining. The main takeaway for investors is bigger than ever before the pandemic Analysts are buying it. The Marketbeat.com consensus of 14 analysts is a moderate buy, which has held steady over the past two years.
The price target is down on a YOY basis, but implies a 15% upside for investors. The next earnings report is due in mid-January 2023, which should help push the stock higher. A baby-formula withdrawal may also be behind the company’s recent woes. Recent analyst commentary raised Citigroup’s price target above the current consensus.
Johnson & Johnson Dividend Kings is a king
Johnson & Johnson (NYSE: JNJ ) Not a very long history of consecutive annual increases, but with 60 of them it’s not far off. That’s longer than most investors have been alive and dividend metrics suggest another 60 years, if at all. At 44%, the payout ratio is low enough and the balance sheet is well managed, so there’s no reason to think otherwise.
In terms of yield, Johnson & Johnson leaves Abbott at 2.6% compared to 1.75%, and that also offers some value. JNJ stock trades at 17X its earnings compared to Abbott’s 20X, so JNJ has potential. 2023 will perform well.
As for companies, activity has slowed over the past 2 quarters, but net activity for the year remains buoyant at around $7 billion. That’s about 1.5% of the current market cap and is a tailwind that will help the stock stay higher. However, researchers People of low faith and Abbott’s Hold on JNJ compared to Moderate Buy. The lower price target on the 12, 3 and 1-month comparison is only 1.5% higher than recent price action and may limit gains in the near term. Johnson & Johnson will next report earnings at the end of January 2023.
Before we talk about Johnson & Johnson, you need to hear this.
MarketBeat tracks Wall Street’s top-rated and best-performing research analysts and the stocks they recommend to clients on a daily basis. As MarketBeat identified Five stocks The best analysts quietly whisper to their clients, buy now before the broader market spreads… and Johnson & Johnson is off the list.
While Johnson & Johnson currently has a “Hold” rating among analysts, top analysts believe these five stocks are great buys.
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