Abbott (ABT) in 2025: Dividend King, Diabetes Care Leader, and Molecular Diagnostics Growth#
Abbott Laboratories (ABT) is demonstrating strong performance in 2025, driven by its Dividend King status, growth in Diabetes Care (FreeStyle Libre), and expansion in the Molecular Infectious Disease Testing market. Despite potential risks from FX fluctuations and supply chain disruptions, ABT is well-positioned for future growth.
Abbott's Dividend King Status: Consistent Returns and Investor Confidence#
Abbott's Consistent Dividend Growth#
Abbott Laboratories (ABT), a stalwart in the healthcare industry, has solidified its position as a 'Dividend King,' a title reserved for companies with a remarkable track record of increasing dividend payouts for at least 50 consecutive years. In December 2024, ABT announced a 7.3% increase in its quarterly common dividend to 59 cents per share, marking its 53rd consecutive year of dividend growth (PR Newswire). This consistent commitment to rewarding shareholders underscores ABT's financial stability and long-term growth prospects.
The company's impressive dividend history, with 405 consecutive quarterly dividends paid since 1924 (PR Newswire), reflects its ability to generate sustainable cash flow and navigate economic cycles. This makes ABT an attractive investment for income-seeking investors who prioritize consistent returns and financial security. According to Monexa AI data, Abbott's dividend payout has increased by more than 60% since 2020, demonstrating its commitment to returning value to shareholders.
Outperforming the S&P 500#
In early 2025, the 'Dividend Kings' initially underperformed the S&P 500 ETF (SPY). However, recent data indicates a resurgence, with the Dividend Kings outperforming the S&P 500 year-to-date. As of February 26, 2025, the Dividend Kings are up 4% YTD versus 1.39% for SPY (Seeking Alpha). Notably, ten Dividend Kings have already achieved double-digit returns, with Abbott Laboratories (ABT) leading the pack with a +20.71% increase (Seeking Alpha). This strong performance highlights the resilience and potential of dividend-paying stocks in a volatile market environment.
This outperformance suggests that investors are increasingly seeking stable, dividend-paying stocks as a hedge against market uncertainty. ABT's robust financial performance, coupled with its consistent dividend growth, positions it favorably in the eyes of investors seeking long-term value and income.
Diabetes Care Innovation: FreeStyle Libre and Market Leadership#
FreeStyle Libre: A Game Changer in Diabetes Management#
Abbott's Diabetes Care business, particularly its FreeStyle Libre continuous glucose monitoring (CGM) system, has emerged as a significant growth driver for the company. The FreeStyle Libre system offers a convenient and cost-effective alternative to traditional fingerstick monitoring, enabling individuals with diabetes to track their glucose levels in real-time. The expanding diabetes business supports ABT stock (Zacks.com). According to Zacks.com, the Diabetes Care business continues to benefit from the growing sales of its flagship, sensor-based continuous glucose monitoring system, FreeStyle Libre.
The FreeStyle Libre system has gained significant traction in the market due to its ease of use, affordability, and accuracy. Recent reports indicate that ABT has secured a price-sensitive market share with FreeStyle Libre, worth nearly $1 billion in the United States. This success underscores the company's ability to innovate and deliver solutions that meet the evolving needs of individuals with diabetes.
Expanding Access with Libre Rio#
Building on the success of FreeStyle Libre, ABT is committed to expanding access to its CGM technology through innovative solutions like Libre Rio. This new system is designed to be even more affordable and accessible, catering to a wider range of individuals with diabetes. By focusing on affordability and accessibility, ABT aims to democratize access to CGM technology and improve diabetes management for a larger population.
This strategic focus aligns with the growing demand for cost-effective diabetes management solutions. As the prevalence of diabetes continues to rise globally, ABT's commitment to affordability positions it favorably to capture a larger share of the expanding CGM market.
Abbott vs. Dexcom in Diabetes Care#
While Abbott's FreeStyle Libre has made significant strides in the CGM market, it faces stiff competition from established players like Dexcom. Dexcom currently leads the CGM sector. Other competitors in the CGM market include Medtronic and Senseonics, each vying for market share with their own unique technologies and offerings.
The CGM market is expected to experience substantial growth in the coming years, driven by the increasing prevalence of diabetes and the growing awareness of the benefits of CGM technology. The United States Continuous Glucose Monitoring (CGM) market size was valued at USD 3.7 billion in 2024 and is projected to hit around USD 8.4 billion by 2033, growing at a CAGR of 9.5% during the forecast period 2025 to 2033 (Business Wire). This market growth presents a significant opportunity for ABT to expand its market share and solidify its position as a leader in diabetes care.
The 'Above the Bias' Initiative: Addressing Stigma in Diabetes Care#
Abbott recognizes the challenges faced by individuals with diabetes, including the stigma and shame associated with the condition. To address this issue, ABT launched the 'Above the Bias' initiative, a campaign aimed at raising awareness and promoting understanding of diabetes. This initiative seeks to create a more supportive and inclusive environment for individuals with diabetes, empowering them to manage their condition with confidence.
A recent survey revealed that 40% of people living with diabetes have skipped or missed a doctor's appointment due to shame or stigma. Furthermore, 70% of people with diabetes said supportive comments from others can significantly boost their motivation to manage their condition. By launching the 'Above the Bias' initiative, ABT demonstrates its commitment to addressing the holistic needs of individuals with diabetes, not just their physical health.
Molecular Diagnostics Expansion: Capitalizing on Infectious Disease Testing Growth#
Molecular Infectious Disease Testing Market Growth Drivers#
The global Molecular Infectious Disease Testing market is experiencing rapid growth, driven by the rising burden of infectious diseases and rapid technological advancements in molecular diagnostics. The increased incidence of emerging infectious diseases and antibiotic-resistant infections leads to greater demand for accurate and reliable diagnostics. In addition, there are rapid advances in the efficiency of molecular testing techniques, such as PCR and next-generation sequencing, which have improved diagnostic capabilities. These provide results that are more sensitive and at a faster speed, and allow for the simultaneous identification of multiple pathogens, which becomes vital in handling complex and continually changing infectious disease threats.
The global Molecular Infectious Disease Testing market, valued at US$8.49 billion in 2023, is forecasted to grow at a robust CAGR of 13.7%, reaching US$9.37 billion in 2024 and an impressive US$17.78 billion by 2029 (PR Newswire). This growth presents a significant opportunity for companies like ABT, which offer a range of molecular diagnostic solutions.
Abbott's Investment in Multiplex Testing#
Abbott is strategically investing in and positioning itself to capitalize on the projected growth of the Molecular Infectious Disease Testing market, particularly in multiplex testing. Multiplex testing, which allows for the simultaneous detection of multiple pathogens in a single test, is expected to witness the highest growth rate in the molecular infectious disease testing market. An advancement in multiplex testing which could transform the molecular infectious disease testing market, is the integrated, fully automated multiplex diagnostic platforms (PR Newswire).
By focusing on multiplex testing solutions, ABT aims to improve the efficiency and accuracy of infectious disease diagnosis. The automation of multiplex testing minimizes the chance of human error, enhances throughput, and accelerates the diagnostic process. These are the factors why this technology will thrive in environments of high demand such as hospitals, urgent care centers, and public health labs. The more these systems become user-friendly and affordable, the greater their potential will be to enhance access to multiplex tests in more rapid and comprehensive infectious disease surveillance and management across a range of healthcare settings.
Abbott vs. Roche in Molecular Diagnostics#
Abbott faces competition in the Molecular Infectious Disease Testing market from other major players, including Danaher, F. Hoffmann-La Roche Ltd, bioMérieux, Hologic, Inc., Thermo Fisher Scientific Inc., QIAGEN, Revvity, Siemens Healthineers AG, BD, Grifols, S.A., DiaSorin S.p.A., and Seegene Inc. (PR Newswire). These companies have a diversified product portfolio and a good geographic presence also. With growing global burden of infectious diseases and increasing need for accurate diagnostics, such players are well-positioned to develop novel diagnostic technologies and further expand their offerings.
ABT's success in this market will depend on its ability to innovate, develop cost-effective solutions, and expand its presence in key geographic regions.
R&D Pipeline: Future Growth Catalysts for Abbott#
AVEIR Leadless Pacemaker System#
Abbott's commitment to innovation is evident in its robust R&D pipeline, which includes several promising new products and technologies. These innovations have the potential to drive future growth and solidify ABT's position as a leader in the healthcare industry.
Abbott is pursuing technologies to revolutionize care for people with slow or irregular heart rhythms. ABT's investigational AVEIR™ Conduction System Pacing (CSP) leadless pacemaker system is specifically designed to deliver pacing to the left bundle branch area, activating the heart's natural conduction system (PR Newswire). The device has received U.S. Food and Drug Administration breakthrough device designation, which expedites the review of innovative technologies.
Software-Guided TAVI System#
Abbott is also developing a software-guided balloon-expandable TAVI system to treat aortic stenosis. The investigational transcatheter aortic valve implantation (TAVI) system will complement Abbott's Navitor™ TAVI system for aortic stenosis, a common and life-threatening heart valve disease (PR Newswire). The investigational system is designed to offer best-in-class heart blood flow, ease of use and precision.
These innovative medical devices represent a significant opportunity for ABT to expand its presence in the cardiovascular market and improve the lives of patients with heart conditions.
Financial Outlook: Analyst Expectations and Growth Projections#
2025 Revenue and EPS Projections#
Analysts have a positive outlook on Abbott's financial performance, with consensus estimates projecting continued growth in revenue and earnings. ABT projects organic sales growth between 7.5% and 8.5% for 2025, reflecting the company's strong momentum and growth opportunities (Zacks.com).
Wall Street analysts forecast ABT's EPS to be $5.15 for 2025, with the lowest EPS forecast at $5.07, and the highest EPS forecast at $5.20 (WallStreetZen). These projections reflect confidence in ABT's ability to execute its growth strategy and deliver value to shareholders.
Impact of Foreign Exchange Rates#
ABT acknowledges that foreign exchange (FX) fluctuations could significantly impact its financial results. As a global company with operations in numerous countries, ABT is exposed to currency risk, which can affect its revenue and profitability.
To mitigate the potential negative impact of FX fluctuations, ABT may employ hedging strategies or other financial instruments. However, ABT has not provided GAAP financial measures on a forward-looking basis because it is unable to predict with reasonable certainty the impact of foreign exchange. Management believes that measuring sales growth rates on an organic basis, which excludes the impact of foreign exchange, is an appropriate way for investors to understand the core underlying performance of the business.
Managing Supply Chain Disruptions#
Like many other companies, ABT is navigating supply chain disruptions, which can impact its manufacturing and distribution operations. These disruptions can lead to increased costs, production delays, and difficulty in meeting customer demand.
ABT is actively working to mitigate the impact of supply chain disruptions through strategies such as diversifying its supplier base, increasing inventory levels, and improving its supply chain visibility. However, supply chain disruptions remain a potential risk factor that could affect ABT's financial performance.
Key Takeaways and Strategic Implications#
Abbott Laboratories (ABT) is demonstrating strong performance in 2025, driven by its Dividend King status, growth in Diabetes Care (FreeStyle Libre), and expansion in the Molecular Infectious Disease Testing market. While risks from FX fluctuations and supply chain disruptions exist, ABT is well-positioned for future growth. Key strategic implications include:
- Continued Focus on Innovation: ABT's R&D pipeline and commitment to innovation are crucial for maintaining its competitive edge and driving future growth.
- Strategic Investments in High-Growth Markets: ABT's investments in Diabetes Care and Molecular Infectious Disease Testing markets align with strong growth trends and present significant opportunities for revenue expansion.
- Proactive Risk Management: ABT's efforts to mitigate FX fluctuations and supply chain disruptions are essential for protecting its financial performance.
- Commitment to Shareholder Value: ABT's consistent dividend growth and commitment to returning value to shareholders make it an attractive investment for income-seeking investors.
Financial Performance Metrics#
| Metric | Value |
|---|---|
| Current Price | $135.96 |
| Market Cap | $235.8 Billion |
| Dividend Yield (TTM) | 1.65% |
| P/E Ratio (TTM) | 17.77 |
| 52 Week High | $136.59 |
| 52 Week Low | $99.71 |
Analyst Estimates#
| Year | Estimated Revenue (Avg) | Estimated EPS (Avg) |
|---|---|---|
| 2026 | $47.62 Billion | $5.71 |
| 2027 | $51.12 Billion | $6.32 |
| 2028 | $54.53 Billion | $6.91 |
| 2029 | $58.49 Billion | $7.60 |