DOW JONES NEWSWIRES
Abbott Laboratories (ABT) announced an 11% increase to its
quarterly dividend, the 37th consecutive annual boost for the maker
of drugs and medical devices.
Abbott's dividend increase to 40 cents follows its strong
fourth-quarter results released last month. The company reported
net income rose 28% on strong sales of its Humira anti-inflammatory
drug and new Xience stent device.
Friday's dividend announcement comes as numerous companies have
been cutting dividends to save capital. Abbott said its dividend
payment marks the 341st consecutive quarterly dividend paid, dating
back to 1924. At the old rate, the dividend payments totaled $2.3
billion a year.
Abbott joins companies such as Coca-Cola Co. (KO) and
Sherwin-Williams Co. (SHW) in recently extending their decades-long
streak of annual dividend increases. But General Electric Co. (GE),
for example, has said it won't boost its payment this year for the
first time since the 1970s.
Abbott is partly insulated from the generic-competition problems
affecting the drug industry because patents on some of its
top-selling drugs won't expire for several years. Also, it has a
diversified range of other products that including Ensure nutrition
supplements and laboratory diagnostic systems.
Shares were down 3 cents to $54.42 in recent trading. The stock
is down 2% over the past year.
-By John Kell, Dow Jones Newswires; 201-938-5285;
john.kell@dowjones.com