Healthcare Sector Ideas

[gfp927z]

>>> Abbott Labs


By Justin Pope

Mar 17, 2022


https://www.fool.com/investing/2022/03/17/want-1-million-in-retirement-invest-150000-in-thes/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article


The healthcare conglomerate has gone through some changes since spinning its pharmaceutical business out as AbbVie almost a decade ago. Today, Abbott Labs ( ABT 0.77% ) is positioned primarily in consumer products, medical devices, analytics, testing, and making generic drugs for emerging markets.

Abbott is positioned to cater especially to the cardiology and diabetes fields, which are both fast-growing; heart disease and diabetes are among the most prevalent health conditions in the population. Abbott sells devices for them, including pacemakers, catheters, stents for cardiovascular applications, and a glucose monitoring system for diabetes patients. The company's revenue growth has picked up, growing more than 15% annually over the past five years.

This renewed growth could set the company to perform well over the next decade. Analysts believe Abbott will grow EPS an average of 10% annually over the next three to five years. Abbott also has a storied dividend history that goes back decades before its split with AbbVie. Investors can get a dividend yield of 1.6% on today's share price, which results in low-double-digit total investment returns if the stock's valuation remains constant.

<<<