If You Invested $1000 In Abbott Laboratories 20 Years Ago, How Much Would You Have Now?

Abbott Laboratories ABT, which manufactures and markets cardiovascular and diabetes devices, adult and pediatric nutritional products, diagnostic equipment and testing kits, and branded generic drugs, is set to report its Q3 2024 earnings on October 16. Wall Street analysts expect the company to post an EPS of $1.20, up from $1.14 in the year-ago period. Quarterly revenue is expected to be $10.53 billion, up from $10.14 billion in the same period last year.

The company has never missed EPS and revenue consensus estimates for the last 13 quarters.

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If You Bought Abbott Laboratories Stock 20 Years Ago

The company's stock traded around $19.09 per share 20 years ago. If you had invested $1,000, you could have bought around 52 shares of Abbott stock. Currently, shares are trading at $107.61, meaning your investment's value could have soared to approximately $5,636 due to stock price appreciation. But wait, the company also paid dividends during these 20 years. 

Abbott’s dividend yield is currently 2.02%. Over the last twenty years, Abbott paid approximately $27.49 in dividends per share, which would have resulted in $1,440 in dividends alone for your investment. 

Summing up $5,636 and $1,440, the final value of your investment would be $7,076. This is how much you could have made if you had invested $1,000 in Abbott stock 20 years ago – a total return of 607.6%. In comparison, the S&P 500 total return for the same period is 550.93%.

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What Could The Next 20 Years Bring? 

Abbott Laboratories has a consensus rating of Buy and a price target of $127.53 based on the ratings of 31 analysts. The price target implies a nearly 19% potential upside from the current stock price.

On July 18, Walmart announced its Q2 2024 earnings results, beating revenue and profit estimates and nudging up annual profit guidance on strong Medical Devices growth.

The company reported second-quarter sales of $10.38 billion, up 4%, compared to the consensus of $10.37 billion, as reported by Benzinga. Organic sales growth for the underlying base business was 9.3%, led by double-digit growth in Medical Devices. Abbott's adjusted diluted earnings per share was $1.14, beating analyst estimates of $1.10.

Despite the growth in medical devices, diagnostics sales were impacted by a year-over-year decline in COVID-19 testing-related sales, which dropped to $102 million from $263 million the previous year, as reported by Benzinga. Overall diagnostics sales fell 5.3% to $2.19 billion.

Abbott projects full-year 2024 GAAP EPS of $3.30-$3.40 versus prior guidance of $3.25-$3.40, primarily related to intangible amortization, restructuring and cost reduction initiatives and other net expenses.

The company forecasts adjusted EPS of $4.61-$4.71 versus the prior guidance of $4.55-$4.70 and consensus of $4.63.

Income-focused investors may find Abbott stock attractive, given its solid dividend yield. Furthermore, they can benefit from the company's consistent dividend hikes. Abbott has raised its dividend consecutively for the last 53 years.

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