The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also managesGoodfellow LLC, a subscription-only stock market website. We strive to identify financially healthy companies in which traders and investors can buy shares and earn dividends and capital gains. Seedisclaimer for the risks associated with investing in the stock market. See your tax advisor for the tax consequences of investing. See your estate planning attorney to clarify beneficiary and inheritance issues associated with your assets.
Sunday, April 10, 2011
Stock Idea: Abbott Labs (ABT, $50.49)
(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at www.GoodfellowLLC.com. Please visit!)
Abbott Labs (ABT) develops, produces and sells pharmaceutical, vascular, nutritional and diagnostic products in the healthcare industry, with sales of $35 billion in 2010.
Projected consensus EPS growth is 10.1% and 7.63% for fiscal years 2011 and 2012. The PE is 11.0.
The annual dividend is $1.92 per share, which yields 3.8%. The ex-dividend date is April 13, so you want to buy the stock by April 12 in order to receive the next dividend.
The stock has recently been trading in the $46-$53 range, and it looks like it's getting ready to return to its pre-2008 financial meltdown trading range of $50-$60. Abbott stock shows good prospects for short-term and medium-term traders. Longer-term stock investors can collect a high dividend while expecting steady growth.
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The information provided herein is obtained from sources believed to be reliable but is not guaranteed as to accuracy or completeness. Investments are risky, and can go down in value. Past investment results are not indicative of future returns. I am not a licensed investment advisor nor a tax advisor. Consult with a licensed investment advisor and a tax advisor to determine the suitability of any investment. This is not a solicitation to buy or sell any security.
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