Why Abbott Laboratories Is The Next High-Yield Health Care Dividend Stock On My Radar

From a sector-by-sector perspective, I am particularly bullish on health care going forward. The reason is because of demographics. The U.S. is an aging population. The Baby Boomers, those born in the years following World War II, total 75 million in the United States. Baby Boomers are the second largest generational group, only slightly behind the Millenials. With millions of people retiring each year, the aging population presents a tailwind for the health care sector that should result in sustained, long-term growth.
Therefore, I've been increasingly adding stocks to my portfolio that I believe will benefit from the demographic trends. Specifically, I wrote in this article that I recently added Gilead Sciences (Nasdaq: GILD) to my portfolio. I also own health care REITs HCP (NYSE: HCP) and Welltower (NYSE: HCN), and I own some shares of GlaxoSmithKline (NYSE: GSK) as well. These purchases were made based on that same thesis-and I'm still on the hunt for other well-run health care stocks with strong cash flow and above-average dividends.
With that in mind, my research has pointed me to a new health care stock I don't yet own: Abbott Laboratories (NYSE: ABT).
Why Abbott Crosses my Radar
I am bullish on Abbott Labs for a two key reasons: it has a diversified business across multiple health care segments, and it will be one of the major beneficiaries of the aging U.S. population. It has four major businesses-nutrition, diagnostics, medical devices, and... Read more