Abbott Laboratories (ABT) Stock: Dividend Boost and Major Acquisition Fuel Bullish 2026 Outlook

Dividend hiked, a blockbuster deal sealed—Abbott Laboratories isn't just playing defense.

The healthcare giant's latest moves signal aggressive growth, putting its 2026 trajectory squarely in the spotlight for investors chasing stability with a kicker.

The Dividend Play: More Than Just Yield

That increased payout isn't just a token gesture for income funds. It's a confident statement on sustained cash flow—the kind that keeps the 'dividend aristocrat' crown polished while quietly funding the next big thing.

Acquisition Engine: Fueling the Long Game

Forget niche tuck-ins. Abbott's major acquisition targets scalable technology or market access, a calculated bet to bypass years of internal R&D. It's growth on a deadline, and the market's watching for immediate integration wins.

The 2026 Calculus: Synergy or Slog?

The real story won't be in this quarter's earnings. The thesis hinges on 2026, where acquired assets must demonstrably move the needle. That's when lofty strategic plans face the gritty reality of execution—a phase where many corporate 'growth stories' quietly go to die, often after management has already cashed their bonus shares.

Bottom line? Abbott is pulling levers that growth investors love. The dividend anchors, the deal propels. If the integration clicks, 2026 looks less like a forecast and more like a launchpad. If it stumbles, well, at least the yield will cushion the fall—a classic case of corporate hedging that would make any portfolio manager nod in weary recognition.

TLDR

• Abbott increases its quarterly dividend by 6.8%, marking 54 consecutive years of dividend growth.
• The $21 billion Exact Sciences acquisition is set to boost diagnostics revenue growth by about 300 basis points.
• UBS reiterates a Buy rating and raises Abbott’s price target to $158 after the announced deal.
• Abbott reports strong MedTech and diagnostics momentum heading into 2026.
• ABT stock trades near $123.69 as it maintains its position in the S&P 500 Dividend Aristocrats Index.

Abbott Laboratories (NYSE: ABT) trades at $123.69 as of the latest market reading. The company has reinforced its long-standing commitment to shareholder returns through a 6.8% increase in its quarterly dividend, raising the payout to $0.63 per share.

Abbott Laboratories, ABT

This update pushes the annual dividend to $2.52, reflecting a yield of 1.91% based on a recent price of $123.51. The new announcement extends Abbott’s streak to 54 consecutive years of dividend growth and cements its legacy of 408 uninterrupted quarterly dividends since 1924.

Dividend Strength and Aristocrat Status

The company’s dividend profile continues to stand out. InvestingPro data shows that Abbott has sustained dividend payments for 55 straight years with a recent dividend growth rate of 7.27%. The payout has climbed more than 70% since 2020. Abbott’s consistent performance keeps it firmly positioned within the S&P 500 Dividend Aristocrats Index, a benchmark for companies committed to long-term shareholder value.

The recently approved dividend will be paid on February 13, 2026, to shareholders of record as of January 15, 2026. This predictable income stream supports investors seeking stability from a mature global healthcare leader.

Strategic Expansion Through Exact Sciences Acquisition

Abbott’s announcement of a $21 billion deal to acquire Exact Sciences has been a major highlight. The acquisition price of $105 per share aligns with Benchmark’s 2026 revenue expectations for Exact Sciences and mirrors valuations seen in previous peak cycles for the company. UBS responded by reiterating a Buy rating for Abbott and raising its price target to $158, citing the potential of the acquisition to accelerate long-term growth.

The transaction is expected to close in the second quarter of 2026. Abbott anticipates that integrating Exact Sciences will expand its diagnostics segment growth by roughly 300 basis points. This segment currently represents about 20% of Abbott’s total revenue, making the deal a meaningful catalyst ahead of 2026.

Business Profile and Global Reach

Abbott’s operations extend across diagnostics, medical devices, nutrition, and branded generic pharmaceuticals. The company employs about 114,000 people and serves customers in more than 160 countries. Its multi-division structure provides resilience across economic cycles, while targeted expansions such as the Exact Sciences purchase reinforce long-term competitive positioning.

Performance Overview

Despite strong fundamentals, ABT’s returns have trailed the broader market in recent years. As of December 12, 2025, the stock delivered an 11.43% year-to-date return compared to the S&P 500’s 16.51%. Its five-year return stands at 26.50%, also below the S&P 500’s 87.06%. While the index outperformed, Abbott’s consistency and dividend reliability remain central to its investor appeal.

The company’s third-quarter 2025 earnings highlighted sustained double-digit MedTech sales growth, supporting the outlook that Abbott can exceed analyst expectations for 2026.

Abbott’s combination of a strengthened dividend, a strategic acquisition, and expanding global operations positions the company for steady long-term performance as it moves into the next fiscal year.