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Abbott Laboratories (ABT) declares quarterly dividend of $0.14/share post-split. The AbbVie...

Abbott Laboratories (ABT) declares quarterly dividend of $0.14/share post-split. The AbbVie board intends to declare dividend of $0.40/share totaling dividend to $0.54/share, 6% increase from prior dividend of $0.51, representing an annual yield of 3.31%. The quarterly dividend of $0.14/share will be payable on Feb. 15, to shareholders on record of Jan. 15. (PR)
Comments (5)
  • Tortoise #1
    , contributor
    Comments (426) | Send Message
     
    I believe the report regarding ABT's next quarterly dividend is incorrect. The ABT dividend to be paid 2/15/2013 will be $ .14 or
    $ .54 annually.

     

    After the January 1st split, AbbVie management will recommend to their Board a quarterly dividend of $ .40 or $1.60 annually.

     

    The combination of the two dividends will be $ .54/quarter or $2.16 annually - an increase of $ .12 annually or 5.9%.
    14 Dec 2012, 02:59 PM Reply Like
  • tomlos
    , contributor
    Comments (1105) | Send Message
     
    either way, it's an increase and a boon to share holders! Looking forward to the split.
    14 Dec 2012, 04:43 PM Reply Like
  • JimHarris
    , contributor
    Comments (7) | Send Message
     
    According to Warren Buffett, his company should be able to invest for it's shareholders better than they could individually for themselves. That is why they don't do dividends, but rather re-invest with share buy-backs instead.

     

    IMO, the disparity of dividends may reflect some of that thinking. But the report is correct in that the dividend for the two split companies will total $0.54 (.14 + .40) as stated. Abbvie's strong income (largely from Humira) provides better margins than the typical product of the new Abt.

     

    Anywho, the whole thing is intended to leave shareholders about where we were---and whether this is a great move for us will not be answered until there is time to see the eventual results of the split.
    15 Dec 2012, 04:19 AM Reply Like
  • mkeast48
    , contributor
    Comments (3) | Send Message
     
    I am retired and have ABT in my IRA. Originally I bought the stock for the dividend and some appreciation. So far, I am slightly in the negative. Whether the split enhances sharehold value remains to be seen. I have been thinking of selling ABT after the split.
    19 Dec 2012, 01:32 PM Reply Like
  • Tortoise #1
    , contributor
    Comments (426) | Send Message
     
    If an investor is looking for profits from buying and selling stocks, before and after the ABT splits, Abbott probably would not be one of one of those stocks. But, for long-term, dividend-growth, it would be ideal.
    I am well aware that past results are not a guarantee of future performance; however, in 2012, ABT raised its dividend for the 40th consecutive year and had paid a dividend 89 consecutive years.
    If the combined dividend, after the split, is $2.16, it will mark the 41st consecutive year of increase! I think that will happen!
    20 Dec 2012, 01:53 PM Reply Like
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