Dividend King Abbott Shows Why 52 Consecutive Increases Weren't Luck With Strong Cash Flow Coverage
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Dividend King Abbott Shows Why 52 Consecutive Increases Weren't Luck With Strong Cash Flow Coverage
"The company just raised its quarterly dividend to $0.63 in January 2026, a 6.8% increase from the prior $0.59 rate. That puts the annual payout at $2.52 per share with a yield around 1.9%. Not eye-popping, but the safety and growth profile more than compensate. Abbott generated $6.35 billion in free cash flow in 2024 against $3.84 billion in dividend payments."
"That's a free cash flow payout ratio of 60.4%, leaving plenty of room for continued increases. The company paid out $1.03 billion in dividends in Q3 2025 while generating $2.29 billion in free cash flow, a comfortable 45% quarterly payout ratio. Operating cash flow hit $8.56 billion in 2024, up 18% from 2023's $7.26 billion. Capital expenditures remain disciplined at around $2.2 billion annually,"
Abbott raised its quarterly dividend to $0.63 in January 2026, producing a $2.52 annual payout and roughly 1.9% yield. Free cash flow totaled $6.35 billion in 2024 versus $3.84 billion in dividends, implying a 60.4% free cash flow payout ratio and a 45% quarterly payout in Q3 2025. Operating cash flow reached $8.56 billion in 2024 while capital expenditures ran near $2.2 billion, leaving cash for dividends, debt reduction, and buybacks. Total debt fell from $15.3 billion at year-end 2024 to $12.9 billion by Q3 2025, with net debt under 0.5x EBITDA.
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