Better Dividend King to Buy Right Now: Abbott Labs or Johnson & Johnson?
These two high-quality dividend payers have had very different fortunes recently.
Investors seeking dependable dividend stocks often turn to Dividend Kings - companies that have increased their payouts for at least 50 straight years. Abbott Laboratories (NYSE: ABT) and Johnson & Johnson (NYSE: JNJ) are two prominent healthcare firms in this exclusive group. However, their performance this year has diverged significantly. While Johnson & Johnson has outperformed broader market indices, Abbott Laboratories has struggled to keep pace with the market.
Abbott has encountered various obstacles in recent years. Revenue and earnings growth have been weak, especially in its diagnostics and nutrition divisions. Additionally, the medical device company has faced legal and regulatory challenges. One notable issue is a series of lawsuits alleging that Abbott's baby formula contributed to health problems in premature infants. These setbacks have weighed heavily on the company's stock performance.
With Abbott's recent difficulties, Johnson & Johnson appears to be the stronger buy at this juncture. Its track record of dividend increases and ability to outperform the market suggest it may be the more advantageous investment choice for now.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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