Forget Tilray: This Steady Income Stock Beats Wild Cannabis Swings Every Time

Tilray Brands (NASDAQ: TLRY), like many other cannabis stocks, has taken investors on a wild roller-coaster ride the past few years, though for the most part, that ride has been downward. The stock soared by more than 10 times in the months after its 2018 IPO. But then, the optimism faded. Over the past five years, Tilray's share price has collapsed by 97%.

Instead of being frustrated with those types of returns, or fervently hoping that investing in a beaten-down cannabis stock will pay off years from now, allow me to suggest investing your money instead in a dependable dividend stock.

That stock is Abbott Laboratories (NYSE: ABT). The healthcare equipment company is a Dividend King, having increased its payouts for 54 straight years, including a 6.8% raise this year. Over the past 10 years, it has increased its payout by more than 140%.

Image source: Getty Images.

A stock on its way up

At first glance, Abbott Laboratories may seem like a sluggish investment. Its shares are down more than 6% over the past five years. However, when you factor in dividends, its total return is a little more than 2% over that period. Still unimpressive, but look at its earnings this past year.

Abbott Labs' revenue rose 5.7% in 2025 to $44.3 billion, and adjusted earnings per share (EPS) rose 10% to $5.15. For 2026, management is guiding for adjusted EPS in the range of $5.55 to $5.80, which would be another 10% jump at the midpoint, and revenue growth of 6.5% to 7.5%.

The stock saw big gains during the pandemic as Abbott benefited from COVID-19 testing revenue. However, as that source of sales largely dried up, its total revenue fell, and its top line, though recovering recently, has yet to return to its peak. That's one reason its shares haven't kept up with the market. However, now that its core businesses in medical devices and established pharmaceuticals are again growing, there's plenty of room for optimism.

Another area that offers an opportunity for growth is the company's Volt Pulsed Field Ablation (PFA) system for heart rhythm disorders, which the Food and Drug Administration (FDA) just approved in December. According to Abbott, there are roughly 12 million people in the U.S. over 65 with atrial fibrillation who could benefit from the Volt PFA, and it expects that number to double in the next two decades.

Why were shares down in the first place?

There are, however, good reasons why investors haven't been rushing to buy Abbott Labs stock. The company is facing lawsuits and FDA-mandated recalls due to problems with its FreeStyle Libre 3 continuous glucose monitoring systems.

The company has four segments: diagnostics, medical devices, nutrition, and established pharmaceuticals.

While sales in its established pharmaceuticals segment rose 6.6% in 2025 and its medical devices segment sales increased by 12.6%, revenues for its nutrition and diagnostics segments were flat or down, due in part to the company's FreeStyle Libre 3 issues, the loss of government contracts for its nutrition business, and a slump in sales to China.

The worry about lawsuits regarding the FreeStyle Libre 3 has hung over the stock, as it is a flagship product for Abbott. However, management has said it is undertaking corrective actions regarding the product's safety, and the risks of the lawsuits leading to costly payouts are already baked into the stock's price. Financially, Abbott's diversified product portfolio gives it a large cash cushion that it can tap if it needs to.

Exact Sciences deal adds growth potential

Abbott Labs is in the process of finalizing its $23 billion acquisition of Exact Sciences (NASDAQ: EXAS), maker of Cologuard at-home colorectal cancer screening kits, as well as blood-based tests for other cancers. Exact Sciences shareholders approved the deal on Feb. 20, and it's expected to close in the second quarter.

The purchase will bolster Abbott's diagnostics segment, which had sales of $8.9 billion in 2025, down 4.5%. Exact Sciences' top line jumped by 18% to $3.2 billion in 2025. Exact Sciences also reported a net loss of $208 million, but Abbott Labs says it expects to realize cost savings from the acquisition.

Exact Sciences' solid position in the cancer testing niche will give Abbott a stronger foothold in the rapidly growing oncology diagnostics market. A report by Grand View Research estimated that the cancer diagnostics market was worth $109.6 billion in 2024, and forecasts a compound annual growth rate of 6.14% from 2025 to 2030 that will turn it into a $155 billion market.

The combination of a steadily rising dividend and Abbott's potential for growth makes it a solid choice to buy now and hold onto.

James Halley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool recommends Tilray Brands. The Motley Fool has a disclosure policy.