Published November 19th, 2018
We analyzed each Dividend Aristocrat by looking at their earnings, dividends, maximum draw down (MDD) and stock price performance during the 2007-2009 financial crisis.
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Dividend Aristocrats Abbott Laboratories (ABT) is engaged in the discovery, development, manufacture, and sale of a line of health care products. Abbott Laboratories has a market capitalization of $124 billion (November 2018). The company was founded in 1888 and is headquartered in Lake Bluff, Illinois.
As a healthcare company, Abbott Laboratories is very recession-resistant and has been able to increase dividend payouts for 45 consecutive years include the 2007-2010 period. The company’s fundamental financial performance during the 2007-2009 financial crisis can be seen below:
- 2007 adjusted earnings-per-share of $2.84
- 2008 adjusted earnings-per-share of $3.03 (6.7% increase)
- 2009 adjusted earnings-per-share of $3.72 (22.8% increase)
- 2010 adjusted earnings-per-share of $4.17 (12.1% increase)
Remarkably, Abbott Laboratories managed to increase its adjusted earnings-per-share during each year of the 2007-2009 financial crisis. This growth was not slow, either – Abbott Laboratories’ earnings-per-share expanded at a cumulative annualized growth rate (CAGR) of 13.7% during this time period.
ABT stock performance 2007-2009
Abbott Laboratories’ stock price performed similarly well during this economic catastrophe. The company’s stock price from 2007-2009 can be seen below, including the 200-days moving average.
ABT Dividends 2007-2010
Abbott Laboratories’ dividend also increased during this recession, as shown in the bar chart below:
See also the overall performance of the dividend aristocrats during recession.
Other Sources of Dividend Investment Ideas
The Dividend Aristocrats list is not the only way to quickly screen for businesses that regularly pay rising dividends.
- The Dividend Kings List is even more exclusive than the Dividend Aristocrats. It is comprised of less than 20 businesses with 50+ years of consecutive dividend increases.
- The MoneyInvestExpert Defensive Aristocrats is a performance-based top-10 selection of the Dividend Aristocrats to outperform the market on the long-term.
- Portfolio lists like the Berkshire Hathaway Portfolio or Bill Gates’stock portfolio can be a source.
- For the European focused investors there is also the list of European Dividend Aristocrats.
- Dividend Champions are not necessarily members of the S&P 500 index, have increased their dividend for 25 or more consecutive years.
- 100+ years of dividend, the list of stocks that pay over 100 year of dividend can be an list of inspiration.
Next to selecting the right dividend stocks, important principles for successful long-term investing are Disciple, Diversification, Defensive & indeed Dividend. Read more about this in our free e-book.
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