Abbott Labs For Healthy Portfolio Gains

Overview: Abbott Labs is a global, broad-based health care company devoted to discovering new medicines, new technologies and new ways to manage health. Products span the continuum of care, from nutritional products and laboratory diagnostics through medical devices and pharmaceutical therapies.

Reasons To Buy: 1. Diversified, High quality company, founded in 1888

2. P/E of 14 is cheap for a potential double digit grower over the next several years.

3. Increasing exposure to emerging markets will deliver increased growth rate

4. Current dividend yield is 3%

5. Solid balance sheet - nearly 9 billion in cash or $5.62 per share

6. Patent protection on all drug products until 2017

7. Conservative management team has made excellent recent aquisitions

Risks:

Leading drug Humira on track to become 8 billion dollar drug - risk to Abbott growth rate if sales of drug slow.

Healthcare reform legislation provides uncertainty for health care stocks, especially on medical device makers.

Conclusion:

Abbott Labs is considered an excellent long term investment opportunity suitable for retirement accounts. ABT Provides a 3% dividend yield and has a unique combination of relative safety, income, growth and value.  The stock could trade above 62 within a couple of years and provide increasing dividend income. We are buying 300 shares for the Model Retirement Portfolio at the open on Tuesday, December 1, 2009. 

As always do your own due diligence before investing. (Disclosure: Members of eWorldvu are long the stock of Abbott Labs).  For more on health care reform legislation, please read:  The Cost Of Obamacare Is Political Pain  on eworldvu.com.

http://www.eworldvu.com

Update on Tuesday, December 1, 2009 at 09:32AM by Jim Smith

300 shares at open in Retirement Model Portfolio at 54.85 on 12/1/2009,   Dollar Cost $16,455

S/P  - 1102