3 Dividend Stocks in the ‘Sweet Spot’

1) Abbott Labs

Abbott (NYSE:ABT) is a healthcare giant engaged in the discovery, development, manufacture and sale of products around the world. ABT comes in at a 3.2% dividend yield and a P/E right at 15x, all built on a base of operations that has paid out dividends since 1926. Abbott has a 40-year record of boosting its payout, including a healthy 8.8% annually over the past 12 years.

Abbott will split into two companies on Jan. 1, with Abbott Laboratories continuing its medical device business and the new entity — AbbVie — taking over pharmaceutical operations. Abbott’s business will retain a diverse portfolio of healthcare products, including nutritional supplements and foods, vascular devices, diagnostic and screening measures, and a generic-drug pharmaceutical operation.

InvestorPlace feature writer Dan Burrows recommends the stock, particularly because Abbott’s hepatitis C drug under development is showing great promise. Plus, the company is making strong inroads into emerging markets, which now account for nearly 25% of revenues.