Thursday, March 22, 2012

Abbott Laboratories, ABT

Image representing Abbott Labs as depicted in ...
Image via CrunchBase

Dividend Machine for week of March 19, 2012
           
            Some stocks just seem to go nowhere and are ignored by investors.  Everybody wants to own a Google type stock but income investors must execute their investment ideas with precision.  The precision we employ is income.  

This week has been troublesome.  I have my dividend machine wish list but and I finally found a company I own and to which I will add more shares.    Abbott Laboratories was really somnolent in 2011 but it has rallied during the last few months.   More importantly Abbott Laboratories, symbol ABT, has increased dividend income every year for 35 years.  Income investors, this company could be considered a core holding. 

As you know I buy stocks, at least in this dividend machine project, on numbers only.   Each dividend machine must meet the four criteria described in the list on the left.  Yet, it is encouraging to know, ABT is a very diversified health care company.  With around 91,000 employees, ABT operates in 130 countries.   Today ABT is a little weak trading in the $60.19 range and I am adding to my position.

This dividend project which I started documenting in my web/blog in 2011 reflects my theory that it matters not when you buy a dividend machine.   I randomly find one dividend machine per week that meets all four criteria.  Using the 2011 experience, you would have a 10.77% capital gain in addition to the dividend income.  

Below is the table of data I used to evaluate ABT.   You can use this tool to help you select a dividend machine for the income producing portion of your portfolio.


DIVIDEND MACHINE
  ABT


Price when profiled
$60.19
Last 4 Qtrs Earnings
$3.01
Last 4 Qtrs Dividends
$1.92
Current Qtr Dividend
$0.51
Annualized Div Yield
3.39%
No. Years Div Increase
39
Debt/Equity ratio
0.53%


            ABT has declared the next quarterly dividend and you will receive $.51 per share if you own it by April 11, 2012 you will be paid on May 15, 2012.

Very Truly Yours,

TheMoneyMadam

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