Abbott Laboratories (ABT) Surged Ahead of the Market in 2025 with Steady Earnings Momentum

Abbott Laboratories (NYSE:ABT) is one of the Best Dividend Stocks of 2025.

Abbott Laboratories (ABT) Surged Ahead of the Market in 2025 with Steady Earnings Momentum

An operating room with a doctor monitoring a patient’s vital signs during surgery with a medical device.

In the first quarter of 2025, the company delivered strong earnings and outperformed a group of medical device peers, despite challenging conditions driven by tariffs. The company exceeded Wall Street expectations across its three key profitability metrics: earnings per share, adjusted gross margin, and adjusted pretax income margin. It also posted stronger-than-expected organic sales growth, excluding contributions from Covid testing.

During the earnings call, CEO Robert Ford noted that the diagnostics business showed solid growth in all regions except China. He mentioned that growth outside China reached about 7% this quarter and that the company is exploring opportunities in other markets to balance out the impact from China. While acknowledging current headwinds, Ford reaffirmed that China remains a valuable and profitable market for the company.

Abbott Laboratories (NYSE:ABT)’s dividend policy is also very strong, making it a reliable investment option for income investors. The company is a Dividend King, having raised its payouts for 53 consecutive years. It offers a quarterly dividend of $0.59 per share and has a dividend yield of 1.77%, as of June 26.

While we acknowledge the potential of ABT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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