In this video, Fool bureau chief Brenton Flynn offers three reasons why you might take a pass on Abbott Labs. The company reduced its dividend after spinning off AbbVie, which reduces its appeal to income investors. The loss of AbbVie means Abbott will have to work harder at improving its earnings since its branded pharmaceutical business isn't there to roll out a blockbuster drug.
Follow along in the video below as Brenton details these bearish arguments.
Wondering about that new position in your portfolio? For some Abbott Labs shareholders, the new year brought with it a new company called AbbVie. Formerly Abbott's branded pharmaceuticals business, shares of the new stock were distributed to investors on Jan. 2. To help investors better understand the situation, The Fool has created a brand new premium report on both stocks. Inside, we outline all of the must-know opportunities and risks facing both companies, so make sure to claim this report by clicking here now.