Adding two new US equity positions to both my Income and Growth Portfolios
Abbott Labs, symbol ABT, is a well diversified health company with exposure to medical devices, nutrition, diagnostic and pharma areas.
It has recently acquired both St. Jude Medical and Alere and expects these acquisitions to be accretive to earnings.
Abbott is experiencing strong growth in earnings, operating and free cash flow.
In addition the company has a very long history of increasing dividends. Currently its cash dividend payout is just under 54%, well down from the 90% a few years ago.
The company is trading at a reasonable valuation of just under 20 times 2018 earnings taking into consideration its solid and well diversified growth prospects.
I am also adding Guggenheim equal weight US Industrial ETF to increase my exposure to the industrial sector that is a beneficiary from strong global growth.
Guggenheim’s Industrial US ETF, symbol RGI, has holdings in Textron, Rockwell Automation, Parker Hannafin, W.W. Grainger and Robert Half International.