10 Oversold Dividend Stocks To Buy According to Hedge Funds

5. Abbott Laboratories (NYSE:ABT)

Number of Hedge Fund Holders: 70

Abbott Laboratories (NYSE:ABT) is among the best oversold dividend stocks to invest in. The company reported strong earnings in the second quarter of 2025. It posted revenue of $11.1 billion, which showed a 7.37% growth on a YoY basis. The company reported GAAP diluted earnings per share of $1.01, while adjusted diluted EPS came in at $1.26. Gross margin was 52.7% of sales on a reported basis, with the adjusted gross margin reaching 57.0%, representing a 100 basis point improvement.

Abbott Laboratories (NYSE:ABT) reiterated its guidance and pointed to strong momentum in both its devices and nutrition segments as it moves into the second half of the year. A brief valuation analysis, based on a five-year free cash flow CAGR of 5.74%— calculated using 6% growth in operating cash flow and 2% growth in capital expenditures— suggests that the current share price of $120.51 offers promising return potential.

On June 13, Abbott Laboratories (NYSE:ABT) declared a quarterly dividend of $0.59 per share, which was in line with its previous dividend. This was the company’s 406th consecutive quarterly dividend. In addition, ABT has raised its payouts for 53 years in a row. The stock offers a quarterly dividend of 1.86%, as of July 25.