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Abbott Laboratories
🇺🇸 ABT · NYSE/NASDAQ · US0028241000
Healthcare
USD 93.79 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
26.1
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 93.79 ÷ 3.59 = 26.1
TTM period through: 2026-03-31
Forward P/E (estimated): 16.8
Based on analyst estimates
Reference: Provider P/E (Trailing): 26.7
Net Debt/EBITDA (TTM)
2.4x
Latest quarter: 11.9x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): 11.9x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
12.3%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
15.8x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
2.69%
TTM: 2.65%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 2.69%
Trailing Yield (TTM, last 12 months): 2.65%
Payout Ratio (Fwd)
70.2%
TTM: 66.7%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (Fwd): 70.2%
Payout (TTM): 66.7%
Cash Flow Payout (TTM): 44.2%
FCF Coverage (TTM): 1.76x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
10.4%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 15 Apr 2027 | — | USD | 0.63 |
| Forecast* | Quarterly | — | 15 Jan 2027 | — | USD | 0.63 |
| Forecast* | Quarterly | — | 15 Oct 2026 | — | USD | 0.59 |
| Declared | Quarterly | 12 Jun 2026 | 15 Jul 2026 | 17 Aug 2026 | USD | 0.63 |
| Paid | Quarterly | 20 Feb 2026 | 15 Apr 2026 | 15 May 2026 | USD | 0.63 |
| Paid | Quarterly | 12 Dec 2025 | 15 Jan 2026 | 13 Feb 2026 | USD | 0.63 |
| Paid | Quarterly | 19 Sep 2025 | 15 Oct 2025 | 17 Nov 2025 | USD | 0.59 |
| Paid | Quarterly | 13 Jun 2025 | 15 Jul 2025 | 15 Aug 2025 | USD | 0.59 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Abbott Laboratories is a premier global healthcare leader providing essential medical devices, diagnostics, and nutrition products backed by highly secure free cash flows. While the company's underlying fundamentals are robust and the dividend is exceptionally well-covered, the current valuation around $93 (P/E 26) and sub-3% yield offer limited upside. Existing shareholders should maintain positions given the consistent dividend growth, but new investors may want to wait for a better entry point.
Sector Context
Abbott Laboratories is a diversified global healthcare company that develops and manufactures medical devices, diagnostics, nutritional products, and branded generic medicines. In the healthcare sector, high barriers to entry, patent protection, and steady demand for essential medical products often justify slight valuation premiums, though dividend investors must remain mindful of patent cliffs, regulatory changes, and litigation risks.
Temporary Opportunity Identified
Massive litigation overhang from NEC infant formula lawsuits and IRS tax disputes creating negative headline risk and potential multi-billion dollar liabilities, though the company's strong FCF can likely absorb these shocks over time.
📊 Strategy Analysis
- • Exceptional dividend safety with a recently declared 6.8% raise, supported by a conservative 44.25% cash flow payout ratio and strong free cash flow generation.
- • Highly defensive business model providing essential medical devices, diagnostics, and nutritional products across global markets.
- • Manageable debt profile with a Net Debt/EBITDA ratio of 2.39x, sitting comfortably below our 3x threshold.
⚠ What to Watch
- • Current valuation remains elevated with a TTM P/E of 26.13, significantly exceeding the strategy's target range of 8-15x.
- • The TTM dividend yield of 2.65% falls below the optimal 3% minimum threshold for current income.
- • Substantial structural liability risks from ongoing NEC baby formula litigation, including recent massive jury verdicts, alongside over $1.05 billion in IRS transfer pricing disputes.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-07-04
Disclaimer: This information is for educational purposes only. Not financial advice.