No. of Recommendations: 4
Abbott Laboratories (NYSE:ABT) is spinning off a major part of its business. The two parts are already trading as "when issued" shares.

While the two halves are trading withing shouting distance of each other (31.60, 34.43) their dividends diverge significantly.

Management says the combined dividend for the 2 companies will be at least equal to Abbott's pre-separation dividend. It is expected AbbVie will pay an annual dividend of $1.60 per share, starting with the quarterly dividend in February. This, like all dividends, will be subject to approval by the future AbbVie board in January 2013.

The new Abbott plans to pay a dividend of $0.56 per share, in line with its peer group and growth prospects, also starting in February and also subject to approval by Abbott's board.

This way the combined annual dividend rate of $2.16 for the 2 companies exceeds the current rate of $2.04.

As of Dec 15 that was calculated as ABBV yielding 4.8%, and the new ABT yielding 1.7%.
Print the post  


Motley Fool Income Investor
Are you a dividend-savvy investor? Check out our Income Investor newsletter.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.