Abbott Labs (ABT)

Generally, don’t like to buy stocks when they hit all-time highs. He would wait for a better entry point. Great company. Not cheap but the multiple is not that extreme. (Analysts’ price target is $70.81)

Their medical devices doing well as are their nutritional products given strong global demand; it's diversified and well-managed; pays over 2% dividend with growth. These are products we all need, and with an aging population, there will always be demand.

(A Top Pick May 17/17 Up 38%). He has been very happy with this. It has devices, diagnostics and pharma. The secular trends are positive with aging and obesity adding tailwinds. Their June acquisition was very accretive.

(A Top Pick May 17/17. Up 28%.) He likes that this isn’t a “one trick pony”. It has devices, diagnostics, nutrition, etc. A broad, diversified franchise, in a sector he approves of. Thinks it continues to make a lot of sense.

She continues to hold it and likes it. They have done well this year so she would wait for a pull back to add to this position. They are good at taking costs out. They always increase their dividend and it should continue. A good core holding.

Healthcare, as a sector, is neutral to tilting positively. Within that though, there are some industry groups that he likes, and some he doesn’t like. This one is in the subsector of medical devices, and is a great diversified player in that space. Their acquisition of St. Jude broadens their business and cardiovascular. Dividend yield of 2.4%. (Analysts’ price target is $48.)

Had owned this in the past. They made a number of acquisitions, so patience is required. Acquired St. Jude, which he had seen losing market share to Boston Scientific. One concern is that they bloated out their balance sheet for this acquisition. Trading at about 18X, so not terribly inexpensive. Also, there are still some balance sheet risk. If you are a long-term player, they have a proven ability to execute on their operations, and it will likely get re-rated.

This fits the profile of the type of company he would want to be adding to, on days like today. It is in the sector that is tremendously out of favour. The healthcare sector was the only sector that had a negative return last year. It has started to be a little more resilient this year, but relative to the history of healthcare, valuations are far more reasonable. He likes this because it has a history and a culture of growing the dividend. They have a wonderful brand name. 2.4% dividend yield.