Abbot Labs a Dividend Strategy. Buying dividends — the strategy of buying a stock for the sole purpose of collecting the quarterly dividend, then immediately selling after it has been paid — can be lucrative, but it requires excellent timing, as well as selectiveness about which stocks you target. Abbott, which pays a 24-cent quarterly dividend, yielding 2.32% annually, will issue its payout Nov. 15 to shareholders of record as of Oct. 15.
In this case, that means investors must hold the shares for roughly four weeks — about 20 trading days — to qualify. Based on the outlook as it stands now, the risks involved in that look small. While shares of Abbott — trading at around $40, with a P/E of around 25 — aren’t cheap today compared to the S&P 500 (SPX) index’s P/E of 21, the stock has consensus buy rating and average analyst 12-month price target of $58 — $18 higher than Abbott’s current price. Learn more here