ABBOTT???

[Harmony Management]

Good evening,

Following the split, I kept my ABT shares and sold ABBV. Given the meager dividend paid, about 1.7%, even if it is likely to increase, I wonder if it is not a mistake to keep ABT. What do you think? Also, why do you keep this company in the "Global Dividend Growers" list, because with such a low yield, I think it does not meet all the criteria of this list? Thank you for your answers.

[Jerome]

We have already talked about ABT here at the time.

Since then I have changed my mind. I would have been better off selling both, ABBV and ABT. You are always smarter afterward… I must say that this split story really bothered me because it disrupted my strategy, finding me with two unknown stocks. I regret that the company decided to split in two. At least I would know what to expect the next time a stock that offers increasing dividends splits. Hopefully there won't be any more!

You're right, this title is no longer in line with the GDG. I've been thinking about removing it from the strategy for some time, and even selling it. This will happen soon... I'll write a short article on this occasion.

[Jerome]

Abbott announced a 57% increase of its dividend to $0.22 per quarter.

Abbott beat both analysts' expectations and its own projections for earnings. The company reported third-quarter adjusted diluted earnings of $0.55 per share. That's higher than it had previously guided and handily surpassed the average analysts' estimate of $0.51 per share.

Abbott reported a third-quarter adjusted gross margin ratio of 55.9% and an adjusted operating margin ratio of 19.3%. Both reflected solid improvement over the prior year and beat earlier expectations.

 

This changes things a bit. +6.3%.

To be continued. But that doesn't change the fact that the title is no longer in line with the Global Dividend Growers.

[Lopazz]

As for me, I kept both, and if I reinforce, I will reinforce both 50/50. 

[Jerome]

I have to say that I have a hard time following this company's policy, first they do a spin-off by lowering the dividend, then they massively increase it a year later. I don't like instability and in this case they are doing quite well. Normally I would sell, and God knows if I am for sticking to my principles. But this hurts because it is a beautiful company, a former aristocrat who should have remained one...

[Lopazz]

I agree with you.

But in my case, the ABT + ABBT line represents about 1.5% of my portfolio.

So I prefer to keep it, but if it was higher than 5% I would certainly have made a decision on the file. In the meantime, as long as I continue to abound in cash, there is nothing better to do than to let the price appreciate and collect the small quarterly dividends...

[Author]

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