Core Insights - Abbott Laboratories (NYSE:ABT) is recognized as one of the 11 Best Value Dividend Stocks to buy currently [1] - The company operates in four main segments: established pharmaceuticals, diagnostics, nutrition, and medical devices [2] Dividend Information - On September 19, Abbott declared a quarterly dividend of $0.59 per share, maintaining its previous dividend level [3] - Abbott has increased its dividend payouts for 53 consecutive years, showcasing its status as a strong dividend stock [3] - The current dividend yield stands at 1.77% as of September 26 [3] Business Performance - The pandemic significantly boosted Abbott's performance due to high demand for rapid COVID-19 tests, although sales in this category have since declined [4] - Core operations remain robust, with the FreeStyle Libre, a leading continuous glucose monitoring system, being a key growth driver due to its increasing sales [4]

In this article, we will take a look at some of the best value stocks that pay dividends.Over the long term, investors who bought stocks at lower valuations have generally been rewarded. Economists Eugene Fama and Ken French define value stocks as those with a low price-to-book ratio, and by that measure, US value shares have outpaced growth stocks, which have high price-to-book ratios, by an average of 2.5% annually since 1926. Research from the UBS Global Investment Returns Yearbook, prepared by Elroy Dim ...

Core Insights - Abbott's diversified business portfolio is positioned for continued momentum in 2025 despite a challenging international business environment [1] - The stock currently holds a Zacks Rank 3 (Hold) [1] Diabetes Care - Abbott's Diabetes Care business is benefiting from the strong sales of its FreeStyle Libre continuous glucose monitoring system, which has achieved global leadership in the CGM market for both Type 1 and Type 2 users [2] - In Q2 2025, CGM sales exceeded $1.9 billion, reflecting a 19.6% organic growth, with U.S. Libre sales rising nearly 26% [3] - The upcoming launch of Abbott's dual-analyte sensor is expected to enhance market share, particularly among intensive insulin users [3] Diagnostics Business - Abbott's Diagnostics business accounted for 19.5% of total revenues in Q2 2025, with core laboratory diagnostics (excluding China) growing 8% [4] - Strong demand was noted in the U.S. and Europe (up 7-8%) and Latin America (up high teens), despite temporary headwinds from volume-based procurement in China and reduced U.S. foreign aid for HIV testing [4][9] - The company remains optimistic about the long-term fundamentals of its Core Lab business [4] Established Pharmaceuticals Division (EPD) - Abbott's EPD sales increased 7.7% organically in Q2 2025, with over half of its top 15 markets surpassing $1 billion in quarterly sales for the first time [5] - The focus on biosimilars is expected to strengthen Abbott's prospects, with 10 regulatory approval submissions completed and launches projected for 2026 [5] Financial Performance - Year-to-date, Abbott's shares have gained 19.6%, outperforming the industry's 5.7% improvement [6] - The company's efforts to expand in high-growth areas and new product launches are anticipated to support continued stock uptrend [6] Challenges - Abbott faces challenges from a complex macroeconomic environment, including geopolitical tensions and rising expenses for raw materials and freight [7] - The deteriorating global economic environment is reducing demand for several MedTech products, leading to lower sales and increased costs [7] - Foreign exchange fluctuations have negatively impacted Abbott's performance, with a 1.1% unfavorable year-over-year impact on sales in the first half of 2025 [10]

Group 1 - Abbott Laboratories (NYSE:ABT) is recognized as one of the Best Retirement Stocks for a Dividend Stock Portfolio [1] - The company operates in four main areas: medical devices, established pharmaceuticals, diagnostics, and nutrition, which helps balance performance across segments [2] - Abbott's FreeStyle Libre product line, a continuous glucose monitoring system, is a significant growth driver with substantial expansion potential [3] Group 2 - Abbott declared a quarterly dividend of $0.59 per share on September 19, maintaining its previous dividend level, and has increased dividends for 53 consecutive years [4] - As of September 21, Abbott's stock has a dividend yield of 1.73% [4]

Core Insights - Abbott has shown strong growth and market share gains in its Nutrition business, with a focus on adult nutrition products and a strategic emphasis on biosimilars in its Established Pharmaceuticals division [1][3][10] - The Diabetes Care segment is benefiting from the success of the FreeStyle Libre continuous glucose monitoring system, which has achieved global leadership and is expanding with new FDA-approved products [5][6] - Macroeconomic challenges and currency fluctuations pose potential risks to Abbott's financial performance [1][12][13] Nutrition Business Performance - Abbott's Nutrition business reported 3.4% organic growth in Q2 2025, driven by a 6.6% increase in Adult Nutrition sales [4][9] - The strong demand for Ensure and Glucerna brands supports the growth in Adult Nutrition, while Pediatric Nutrition remains robust in the U.S. with the Similac brand leading the market [4][9] Diabetes Care Segment - Sales of the FreeStyle Libre CGM system exceeded $1.9 billion in Q2 2025, reflecting a 19.6% organic growth, with U.S. sales rising nearly 26% [6][9] - The introduction of new over-the-counter CGM systems marks a significant expansion opportunity for Abbott in the U.S. market [5] Established Pharmaceuticals Division - Abbott's EPD achieved 7.7% organic growth in Q2 2025, with a focus on branded generics in emerging markets [11] - The division is well-positioned for sustainable growth, with a five-year CAGR of 8% and plans for biosimilar launches starting in 2026 [10][11] Financial Performance and Market Position - Abbott's market capitalization stands at $231.06 billion, with an earnings yield of 3.9%, significantly higher than the industry average of 0.2% [2] - The company has outperformed the industry, with a 17.5% stock price increase over the past year compared to a 0.3% decline in the industry [2]

Group 1: Company Overview - DexCom, Inc. is a leading provider of continuous glucose monitoring (CGM) devices, serving millions of individuals managing Type 1 and Type 2 diabetes, as well as those tracking glucose for wellness purposes [2] - Founded in 1999, DexCom pioneered accurate, real-time glucose monitoring, shifting the standard of care away from periodic finger pricks [2] - The company's competitive edge lies in product performance and integration across platforms, with devices like G6, G7, and Stelo offering seamless connectivity compared to competitors [2] Group 2: Business Model and Financial Performance - DexCom's business model is highly lucrative, with hardware representing only 5% of revenue and disposable sensors accounting for 95%, supported by industry-leading retention rates [3] - Despite its strong business model, the stock has underperformed over the past five years, reflecting a negative 20% total return due to growing competition and market pressures [3] - The company faces challenges from Abbott's low-cost FreeStyle Libre platform and Medtronic's investments in next-generation CGM, alongside potential reduced demand from Type 2 patients due to the adoption of GLP-1 drugs [3] Group 3: Market Opportunities - CGM penetration remains low in key populations, including over 100 million Type 2 diabetics and prediabetics in the U.S., with expanding insurance coverage enhancing adoption potential [4] - International markets, such as Japan and Saudi Arabia, are underpenetrated, offering additional growth opportunities [4] - The entry into over-the-counter and wellness markets with Stelo may create new revenue streams for the company [4] Group 4: Investment Thesis - The combination of a high-margin, sticky business model, innovation leadership, and underpenetrated markets provides a compelling risk/reward profile for investors [4] - Previous bullish theses highlighted product innovation, Type 2 diabetes expansion, and user growth despite margin pressures, although the stock has depreciated about 6% since then due to competition and cost headwinds [5] - The current thesis emphasizes reimbursement gains and platform integration, while also acknowledging risks associated with GLP-1 drugs [5]

Core Insights - The article discusses the potential of three major healthcare companies—AbbVie, Johnson & Johnson, and Abbott Laboratories—to reach a market capitalization of $1 trillion within the next decade, highlighting their current market caps and required growth rates to achieve this milestone. Group 1: AbbVie - AbbVie has a current market cap of approximately $369 billion and requires a compound annual growth rate (CAGR) of 10.5% to join the trillion-dollar club within 10 years [4] - The company has seen positive revenue and earnings growth driven by its immunology drugs, Skyrizi and Rinvoq, which are expected to continue their sales growth until patent expiration in 2033 [5] - AbbVie has a strong pipeline and has made recent acquisitions in various fields, enhancing its growth prospects [6] - The company has increased its dividends for 53 consecutive years, offering a forward yield of 3% [7][8] Group 2: Johnson & Johnson - Johnson & Johnson currently has a market cap of $429 billion and needs an 8.8% CAGR over the next decade to reach a trillion-dollar valuation [9] - The company maintains consistent revenue and earnings due to its diverse portfolio of drugs and medical devices, despite facing some patent cliffs [10] - Johnson & Johnson is developing a robotic-assisted surgery device, Ottava, which could be a significant growth driver [11] - The company has a solid dividend history with 62 consecutive years of payout increases and a forward yield of approximately 3% [12] Group 3: Abbott Laboratories - Abbott Laboratories has a market cap of $231 billion and requires a CAGR of 15.8% to reach $1 trillion by 2035, which is considered a challenging target [13] - The company is diversified across four segments: medical devices, nutrition, diagnostics, and established pharmaceuticals, which helps mitigate risks [13] - Abbott is a leader in continuous glucose monitoring devices, with its FreeStyle Libre being the most successful medical device in history by dollar sales [15] - The company has increased its dividends for 53 consecutive years, with a forward yield of 1.8% [16][17]

Core Insights - DexCom, Inc. (DXCM) reported a 15% year-over-year revenue growth to $1.16 billion in Q2 2025, with management raising full-year revenue guidance to $4.6-$4.625 billion, driven by momentum in the type 2 non-insulin segment [1][2] Short-Term Growth Drivers - The rapid expansion of coverage for type 2 non-insulin patients in the U.S. has been a key growth catalyst, with reimbursement secured for nearly 6 million covered lives [3] - The Stelo over-the-counter biosensor has gained traction, surpassing 400,000 downloads, indicating potential for diversification beyond traditional diabetes management [4] - The FDA clearance for the 15-day G7 sensor is expected to enhance utilization and improve gross margin dynamics [7] - Operational improvements in supply chain management have restored inventory levels and mitigated near-term disruption risks [8] Long-Term Growth Drivers - International revenues grew 16% in Q2 2025, with significant opportunities in markets like Japan and Germany due to low penetration of basal insulin users [9] - The next-generation G8 sensor platform is anticipated to expand the addressable market by addressing broader metabolic monitoring needs [10] - Advancements in clinical applications for CGM technology are being explored, with potential new reimbursement approvals for conditions beyond diabetes [11] - Software and AI integration efforts are enhancing user experience and retention, transforming CGM into a comprehensive health platform [12] Challenges - Despite revenue growth, gross margin contracted to 60.1% from 63.5% a year ago due to higher logistics costs [15] - Competitive pressures from companies like Abbott, which reported an 18.3% increase in continuous glucose monitor sales, pose a medium-term risk [19] - A leadership transition is on the horizon, with CEO Kevin Sayer stepping down in early 2026, which carries execution risks [17] - Management remains cautious about the second half of the year, reflecting execution challenges in scaling new coverage wins [18] Conclusion - DexCom's strong double-digit growth is supported by expanded access, international traction, and product innovation, but margin pressures and competitive threats temper near-term enthusiasm [22]

Core Insights - Abbott Laboratories' Diabetes Care business is experiencing significant growth, primarily driven by the FreeStyle Libre continuous glucose monitoring (CGM) platform, which has achieved global leadership in the CGM market for both Type 1 and Type 2 diabetes users [1][2]. Company Developments - Abbott has received FDA approvals for two new over-the-counter CGM systems, Lingo and Libre Rio, expanding its consumer reach and marking a new era in the U.S. market [2][8]. - In Q2 2025, Abbott's CGM sales exceeded $1.90 billion, reflecting a 19.6% organic growth, with U.S. Libre sales increasing nearly 26% [4][8]. - The upcoming launch of Abbott's dual-analyte sensor, which includes ketone monitoring, is expected to enhance its market share, particularly among intensive insulin users [4][8]. Market Trends - The diabetes care devices market is projected to grow significantly, reaching $99.81 billion by 2035, with a compound annual growth rate (CAGR) of 9.6% from 2025 to 2035 [3]. - The increasing aging population, rising obesity rates, and sedentary lifestyles are driving demand in this fast-growing market [3]. Competitive Landscape - Competitors like DexCom and Tandem Diabetes are also expanding their offerings in the CGM space, with DexCom focusing on its G6 and G7 systems and Tandem enhancing its pump portfolio and digital solutions [5][6]. Financial Performance - Year-to-date, Abbott's shares have increased by 19.7%, outperforming the industry growth of 7.9% and the S&P 500's growth of 21.5% [7]. - Abbott currently trades at a forward 12-month Price-to-Sales (P/S) ratio of 4.84X, below the industry average of 5.63X [10].

Core Insights - Abbott Laboratories (ABT) reported second-quarter 2025 adjusted earnings per share (EPS) of $1.26, beating the Zacks Consensus Estimate by 0.8% and improving 10.5% year over year [2][8] - Despite strong earnings and revenue results, ABT stock fell 5% in pre-market trading due to cautious third-quarter guidance [2][8] Revenue Performance - Worldwide sales reached $11.14 billion, a 7.4% increase year over year, surpassing the Zacks Consensus Estimate by 0.6% [3][8] - Organic sales improved by 6.9% year over year, with organic sales excluding COVID-19 rising by 7.5% [3] Segment Analysis - Established Pharmaceuticals segment sales increased by 6.9% on a reported basis to $1.38 billion, with organic sales in emerging markets growing by 8.7% [4] - Medical Devices segment sales rose 13.4% year over year to $5.37 billion, driven by Diabetes Care and Structural Heart products [5][8] - Diabetes Care division reported organic sales growth of 19.6%, with continuous glucose monitors contributing $1.90 billion to total sales [6] - Nutrition sales rose 2.9% year over year to $2.21 billion, with Adult Nutrition benefiting from strong global growth [7] - Diagnostics sales declined 1% year over year to $2.17 billion, impacted by lower COVID-19 testing-related sales [9] Margin and Expense Details - Gross profit increased by 8.9% year over year to $6.29 billion, with gross margin expanding by 79 basis points to 56.4% [9][10] - Selling, general and administration expenses rose 5.3% to $3.09 billion, while research and development expenses increased by 3.9% to $725 million [10] Financial Guidance - For full-year 2025, Abbott expects adjusted diluted EPS in the range of $5.10-$5.20, with organic sales growth projected at 7.5-8.0% [11] - Third-quarter adjusted diluted EPS is expected to be between $1.28 and $1.32, slightly below the Zacks Consensus Estimate of $1.34 [12] Strategic Developments - Abbott announced favorable data from the AVEIR Conduction System Pacing clinical study and received FDA approval for its Tendyne transcatheter mitral valve replacement system [14] - Plans to develop a new cardiovascular device manufacturing facility in Georgia, expected to be completed by 2028 [14]