Abbott Labs: A Boring Dividend Machine That Could Quietly Make You Rich

Over the past few years, the exciting field of artificial intelligence (AI) has captured much of Wall Street's attention and headlines. And sure enough, some of the leaders in AI have produced incredible returns and might continue doing so. However, investors shouldn't ignore businesses that may not be as exciting, but more than make up for that with other qualities that can slowly increase wealth over time.

One such company is Abbott Laboratories (NYSE: ABT). Here's how this healthcare leader could slowly make investors richer.

Image source: Getty Images.

Healthcare never sleeps

Abbott Laboratories' healthcare business spans pharmaceuticals, nutrition, diagnostic solutions, and, arguably, its most important segment: medical devices. The company is a leader in several of the niches where it competes. In nutrition, Abbott is one of the biggest players in the baby formula space. And in medical devices, it leads the market for continuous glucose monitoring (CGM) systems.

Abbott generates consistent revenue and earnings. In 2025, its sales increased by 5.7% year over year to $44.3 billion, while earnings per share rose 10.3% to $5.15.

The company should have plenty of long-term tailwinds. Its CGM franchise will be one of them, as CGM technology still hasn't been widely adopted worldwide, despite its significant advantages for diabetes patients. Abbott is also betting on the cancer diagnostics market, expanding its footprint there through an acquisition. There will be others.

Abbott is an innovator and has made plenty of highly successful breakthroughs. That's what it did with its FreeStyle Libre CGM system, which has now become the best-selling medical device of all time. The company's innovative culture will benefit from an aging population and a growing need for a range of medical services.

Don't forget about the dividend

Dividends can significantly boost long-term returns for investors who opt to reinvest them. And it's through this mechanism that Abbott Laboratories can slowly make investors much richer over the next couple of decades (and beyond). The company is a Dividend King (a corporation with at least 50 consecutive years of annual dividend increases), with an active streak of 54 years. Abbott's returns over the past 30 years with and without dividends reinvested are strikingly different:

ABT data by YCharts.

Investors will need to be patient. Abbott Laboratories, like most stocks, won't make anyone rich quickly. But holding its shares as part of a well-diversified portfolio, and reinvesting dividends, could lead to outstanding returns over the long run.

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool has a disclosure policy.