Better Dividend King to Buy Right Now: Abbott Labs or Johnson & Johnson?
These two high-quality dividend payers have had very different fortunes recently.
Overview
Investors looking for rock-solid dividend stocks can hardly do better than turning to Dividend Kings. This refers to a group of corporations that have raised their payouts for at least 50 consecutive years, an impressive accomplishment. However, not all Dividend Kings are created equal. Take Abbott Laboratories (NYSE: ABT) and Johnson & Johnson (NYSE: JNJ). Both healthcare giants belong to that group, and they have moved in opposite directions this year: Johnson & Johnson has beaten broader equities, while Abbott Laboratories has been a market laggard. Which of them is a better buy today?
Image source: The Motley Fool.
Abbott has faced several challenges over the past couple of years. First, revenue and earnings growth haven't been strong, particularly in its diagnostics and nutrition segments. Second, the medical device specialist has faced some legal and regulatory headwinds. For instance, it has dealt with lawsuits claiming that its baby formula caused health issues in premature babies.
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Originally published at www.fool.com.