Friday, January 20, 2012

Abbott Laboratories (ABT)

So what is that "perfect example of a dividend company" that I invested in for the Model Portfolio?

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

As is pretty typical with most investments in the early 2000s, ABT was overpriced. Perhaps some think that between 2001 to 2010 there was no value given by ABT.
Well if you pay over $50 for something valued at $25, yes it is going to take awhile for you to make a profit if you bought shares of ABT. But in buying those shares you gain all rights and privileges that come along with it including dividends.

During that time period they paid out $11.93 in dividends. Thats not too shabby.

Look at the bond comparison in the second screenshot looking at only the income portion. A fixed income product, U.S. Treasuries will pay 1.9% for 10 years. If we total up the growing dividends of ABT and find the average yield on cost? 4.9%. The last estimated year in 2020 will be 6.9% yield on cost.

A comment on Fastgraphs. I am not an affiliate of them. I get no money, special discounts, or anything from them. Its a service that saves me a lot time I would be normally doing anyone in my investing research. And at $10/month its something that an investor on a tight budget might be able to handle.

ABT is definitely an example of why I get excited about dividend investing. Let others think its a worthless no growth stock.

Chart examples are from Fastgraphs.

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

1 comment:


    Grace Groner - 3 Shares of ABT turn into 7 million. Lots of compounding over many years. The benefits of DRIPS.