5 Dividend Kings To Buy For Safe Dividend Growth

In this article, we will discuss 5 dividend kings to buy for safe dividend growth. If you want to read our detailed analysis of dividend kings and the performance of dividend stocks, go directly to read 12 Dividend Kings To Buy For Safe Dividend Growth. 

5. Abbott Laboratories (NYSE:ABT)

5-Year Average Annual Dividend Growth Rate: 12.7%
Dividend Yield as of March 8: 2.05%

Abbott Laboratories (NYSE:ABT) is an Illinois-based medical device company that provides innovative medical solutions to its consumers. The company currently offers a quarterly dividend of $0.51 per share and has a dividend yield of 2.05%, as of March 8. The company is a dividend king with 51 years of consecutive dividend growth. Its 5-year average dividend growth stands at 12.7%.

In January, Barclays raised its price target on Abbott Laboratories (NYSE:ABT) to $125 with an Overweight rating on the shares, highlighting the company’s medical device growth.

As per Insider Monkey’s Q4 2022 database, 60 hedge funds tracked by Insider Monkey reported owning stakes in Abbott Laboratories (NYSE:ABT), compared with 62 in the previous quarter. These stakes are collectively valued at over $3.2 billion.

Vulcan Value Partners mentioned Abbott Laboratories (NYSE:ABT) in its Q4 2022 investor letter. Here is what the firm has to say:

“Abbott Laboratories (NYSE:ABT) is one of the largest and most diversified health care companies in the world. It operates in four segments: diagnostics, medical devices, nutritional products and established pharmaceuticals. The company quickly established itself as a global leader in the development and deployment of COVID-19 rapid diagnostic tests. Consequently, its revenue and profit growth accelerated during the pandemic. As demand for testing slowed to a more sustainable level, the company is facing difficult earnings comparisons. In addition, Abbott voluntarily recalled certain infant formula products and shut down a plant in Michigan where the products were manufactured, which put more pressure on its earnings comparisons. The plant has resumed production, and Abbott is regaining lost market share. We believe that these events, one positive and one negative, have distorted Abbott’s sustainable earning power and has given us an opportunity to purchase it with a margin of safety.”