1 Magnificent Dividend Stock Down 22% That's a Screaming Buy Right Now

By Prosper Junior Bakiny – Mar 19, 2026 at 9:30AM ESTKey PointsAbbott Laboratories' latest financial results were not particularly strong.Some of the company's opportunities could help boost sales growth.The stock has an impressive dividend track record. Abbott Laboratories (ABT 1.20%), a medical device specialist, recently fell off a cliff after a disappointing quarterly update that missed consensus top-line estimates. The healthcare giant is roughly 22% down from its 52-week high of $139.06 as of writing. However, for investors focused on the long game, this may be a great opportunity to load up on the stock. Read on to find out why. Multiple growth avenues and an attractive dividend Abbott Laboratories' revenue in the fourth quarter increased by just 4.4% year over year to $11.5 billion. Weak performances within the company's diagnostic and nutrition businesses pulled sales growth in the wrong direction.

Can Abbott Laboratories jump-start revenue growth? My view is that it can. Let's consider three reasons why. First, the company's most important segment, medical devices, continues to perform well. In the fourth quarter, Abbott's medical device revenue of $5.7 billion increased by 12.3% year over year. Image source: Getty Images. Second, several of the company's medical device products have excellent long-term prospects. That's particularly true of Abbott Laboratories' FreeStyle Libre franchise, a suite of continuous glucose monitoring (CGM) devices that help diabetes patients track their blood sugar levels. There is a vast worldwide opportunity here, since the CGM market remains deeply underpenetrated. As the company noted a few years ago, only 1% of the world's diabetics use CGM. Several things should increase the adoption of CGM devices over the long run, including improved technology -- Abbott has launched several versions of its FreeStyle Libre, each better than the last -- and expanded third-party coverage. Some of Abbott's other franchises look likely to be growth drivers for a while, including its MitraClip and TriClip, which are leading products in their niches within the company's structural heart business. Third, Abbott announced that it was acquiring Exact Sciences (EXAS +0.17%), a cancer diagnostic specialist, for about $21 billion in cash. ExpandNYSE: ABTAbbott LaboratoriesToday's Change(-1.20%) $-1.30Current Price$107.19Key Data PointsMarket Cap$189BDay's Range$107.14 - $109.7752wk Range$105.27 - $139.06Volume10MAvg Vol9.7MGross Margin52.72%Dividend Yield2.21% This merger will help boost the company's diagnostic business. Exact Sciences' most important product, Cologuard, is one of the leaders in its niche as an at-home, non-invasive test for colorectal cancer (CRC). Although Cologuard was first approved in 2014 in the U.S., more than 55 million eligible patients in the country remain unscreened, which is a problem since CRC is the second-leading cause of cancer death in the world. Exact Sciences is expanding beyond that, including with a multicancer diagnostic test. With the help of the larger Abbott Laboratories, Exact Sciences' products should expand their reach and become even more successful. Thanks to these opportunities, Abbott's top-line growth should bounce back. Meanwhile, the stock is an excellent option for dividend seekers. Abbott's forward yield tops 2.3% after the stock's decline. That's higher than the 1.2% average for the S&P 500. Further, Abbott Laboratories has increased its dividends for 54 straight years. That makes it a Dividend King, a group of corporations with 50 (or more) consecutive years of annual dividend increases. So, despite recent issues, Abbott remains an excellent stock to buy, as its financial results should improve while it maintains its strong dividend program. Read NextFeb 25, 2026 •By James HalleyForget Tilray: This Steady Income Stock Beats Wild Cannabis Swings Every TimeFeb 23, 2026 •By Prosper Junior BakinyAbbott Labs: A Boring Dividend Machine That Could Quietly Make You RichFeb 12, 2026 •By Adria CiminoAbbott Labs: The Healthcare Dividend Stock I'd Happily Hold ForeverFeb 2, 2026 •By Prosper Junior BakinyThe Best Dividend King to Buy With $150Jan 31, 2026 •By Adria CiminoLooking for Passive Income in 2026? 3 Dividend Kings to Buy Hand Over FistJan 26, 2026 •By Keith Speights3 Reasons to Buy This Dividend King After Its Steep Sell-OffAbout the AuthorProsper Junior Bakiny is a contributing Motley Fool healthcare analyst covering biotechnology, pharmaceuticals, and healthcare stocks.

Before The Motley Fool, Prosper wrote about investing topics ranging from stock market news to private equity for various companies. He holds a master’s degree in corporate finance from the University of Maryland Global Campus.TMFPBakinyStocks MentionedAbbott LaboratoriesNYSE: ABT$107.15(-1.24%)-$1.34Exact SciencesNASDAQ: EXAS$103.92(+0.16%)+$0.17*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.