Abbott Laboratories (NYSE:ABT) recently declared a dividend of 59 cents per share, marking its 405th quarterly dividend, underscoring its consistent shareholder return approach since 1924. This announcement coincides with a remarkable price increase of about 15% for Abbott's shares over the last quarter, potentially strengthened by positive earnings figures for Q4 2024 and full-year 2024, showcasing rising sales and net income. The market context, with a broad downturn including a 2.2% weekly decline in indexes like the Dow and S&P 500, adds to the significance of Abbott's performance against these backdrops. Its guidance for 2025 predicting a growth in organic sales boosts investor confidence. Furthermore, product advancements such as the inclusion of its FreeStyle Libre 2 in Alberta's Drug Benefit List may have positively influenced market perception despite broader market volatility and economic challenges.

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Over the past five years, Abbott Laboratories has achieved a total shareholder return of 91.30%, indicating strong performance in both share price appreciation and dividend payouts. Several factors contribute to this result. The company demonstrated impressive profit growth in the past year, with earnings surging at a rate that exceeded the medical equipment industry. Notably, Abbott has consistently grown its dividends, achieving 53 consecutive years of dividend increases, reflecting a commitment to rewarding shareholders.

In addition, during the past year, Abbott reported a very large increase in net income, up to US$9.23 billion in Q4 2024, significantly higher than prior years. The inclusion of its FreeStyle Libre 2 on Alberta’s Drug Benefit List and successful trials of its TAVI system and AVEIR pacing device reflect product innovation that may positively impact long-term growth. Furthermore, its valuation appears attractive compared to its peers, providing a potential draw for investors seeking value in a competitive market.

• Discover whether Abbott Laboratories is fairly priced, undervalued, or overvalued in our comprehensive valuation breakdown.
• Assess the potential risks impacting Abbott Laboratories' growth trajectory—explore our risk evaluation report.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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