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Better Dividend: Abbott Laboratories vs. Medtronic, Inc.

By Dan Carroll - Mar 5, 2014 at 12:00AM

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Abbott Labs and Medtronic sport attractive dividends for long-term investors, but which health care giant's the best stock for your financial future?

In the health-care sector, few stocks boast names as well-known as Medtronic ( MDT 0.53% ) and Abbott Labs ( ABT 1.69% ). Medtronic's leadership in the medical device sector and Abbott Labs's strength through medical diversity has made it a strong stock for years. Each stock also offers a reliable dividend, with both Medtronic and Abbott belonging to the S&P 500's Dividend Aristocrats-the group of companies that have raised their dividends annually for at least the past 25 years.

But which of these dividends is the better buy? Abbott offers the higher yield by a slight amount and is well-suited to keep that dividend growing with its strong nutritional business and diagnostics unit, but Medtronic's growth in up-and-coming medical device industries and dominance in major niches such as cardiology make it as reliable a stock as there is in health care.

Find out the winner in the video below, as Motley Fool contributor Dan Carroll takes you through the strengths of Abbott and Medtronic's dividends-and which one should be the right call for your portfolio's health.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

Abbott Laboratories Stock Quote
Abbott Laboratories
ABT
$127.90 (1.69%) $2.13
Medtronic plc Stock Quote
Medtronic plc
MDT
$107.27 (0.53%) $0.57
Boston Scientific Corporation Stock Quote
Boston Scientific Corporation
BSX
$38.88 (2.14%) $0.81

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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