5 Dividend Stocks to Buy According to Mark Coe’s Coe Capital Management

2. Abbott Laboratories (NYSE:ABT)

Coe Capital Management’s Stake Value: $3,298,000

Percentage of Coe Capital Management’s 13F Portfolio: 3.1%

Dividend Yield: 1.53%

Number of Hedge Fund Holders: 61

As of the end of the second quarter of 2021, 61 hedge funds reported owning stakes worth $4.36 billion in Abbott Laboratories (NYSE:ABT), down from 65 in the previous quarter, with stakes valued at $5.13 billion. 

On October 14, Redburn analyst Simon Baker initiated coverage of Abbott Laboratories (NYSE:ABT) with a Neutral rating. 

Polen Capital mentioned Abbott Laboratories (NYSE:ABT) in its Q2 2021 investor letter. Here is what they said: 

“Abbott Laboratories was the lone detractor in the quarter as the company preannounced that revenue and earnings this year would be below their previous guidance. We still expect the company to grow earnings more than 20% this year and continue double-digit earnings growth in the years to come. However, weakness in COVID-19 testing revenue is primarily responsible for the guidance reduction. Abbott is a leader in multiple types of COVID-19 diagnostic tests, and the largely successful vaccine rollout globally is leading to less COVID testing than the company expected. Two years ago, these tests obviously accounted for $0 in revenue but recently accounted for nearly $10 billion in annualized revenues as of the fourth quarter of 2020. We have expected COVID testing revenues to decline sequentially every quarter and eventually level out at less than $1 billion per year. We are not surprised by the current reality, but the decline has been more rapid than what management had expected.

Abbott is a diversified medical products company with likely strong growth to come from its core businesses outside of COVID testing— our investment thesis was not dependent on pandemic related revenue. While the reduction in guidance is atypical for Abbott’s conversative management team, we do not believe it changes our long-term growth assumptions or the investment case in Abbott.”