Oversold Abbott Laboratories (ABT) Could Offer a Healthy Dividend Opportunity

Abbott Laboratories (NYSE:ABT) is included among the 10 Oversold Dividend Stocks to Buy According to Hedge Funds.

The company reported strong earnings in the second quarter of 2025. It posted revenue of $11.1 billion, which showed a 7.37% growth on a YoY basis. The company reported GAAP diluted earnings per share of $1.01, while adjusted diluted EPS came in at $1.26. Gross margin was 52.7% of sales on a reported basis, with the adjusted gross margin reaching 57.0%, representing a 100 basis point improvement.

Abbott Laboratories (NYSE:ABT) reiterated its guidance and pointed to strong momentum in both its devices and nutrition segments as it moves into the second half of the year. A brief valuation analysis, based on a five-year free cash flow CAGR of 5.74%— calculated using 6% growth in operating cash flow and 2% growth in capital expenditures— suggests that the current share price of $120.51 offers promising return potential.

On June 13, Abbott Laboratories (NYSE:ABT) declared a quarterly dividend of $0.59 per share, which was in line with its previous dividend. This was the company’s 406th consecutive quarterly dividend. In addition, ABT has raised its payouts for 53 years in a row. The stock offers a quarterly dividend of 1.86%, as of July 25.

While we acknowledge the potential of ABT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.