Tom Reese/Paul Rubillo, Dividend.com
Abbott Labs (ABT) just announced it is buying Advanced Medical Optics Inc. (EYE) for about $1.36 billion plus debt to expand its eye-care offerings.
Abbott Labs believes Advanced Medical brings superior vision care technologies and service, and should add to Abbott's diverse mix of medical device businesses as well as give it a leadership position in another large and growing segment.
The Bottom Line
We had removed the shares from our "Recommended" list back on Oct. 9, when the stock was trading at $55.29. The dividend yield is 2.81%, based on last night’s closing stock price of $51.17. The stock has technical support in the $46-50 price area. If that fails to hold, we could see the $37-38 levels. If the stock can firm up here, we see overhead resistance in the $55-57 range. We would stay on the sidelines for now.
Abbott Labs (ABT) is not recommended at this time, holding a Dividend.com Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
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