Will This Dividend Aristocrat Lose Its Crown?

Updated

The following video is part of our "Motley Fool Conversations" series in which consumer goods editor and analyst Austin Smith and industrials editor and analyst Isaac Pino discuss topics across the investing world.

In today's edition, Austin discusses one dividend aristocrat that may be losing its crown: Abbott Laboratories. The company has been paying dividends for an amazing 40 years. However, the company is now planning to split into two companies, a medical device company and a pharmaceutical company. In the past, Standard and Poor's has kicked companies off the Dividend Aristocrat list after a spinoff, much like in 2008 when it kicked out Altria following its Philip Morris spinoff.

Editor's note: In the video, Austin says thespinoff occurred in 2008; it was actually 2007. The Fool regrets the error.

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At the time thisarticle was published Austin Smith has no positions in the stocks mentioned above. Isaac Pino has no positions in the stocks mentioned above. The Motley Fool owns shares of Abbott Laboratories, Johnson & Johnson, Altria Group, and Philip Morris International.Motley Fool newsletter services recommendJohnson & Johnson and Philip Morris International. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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