PizzaTrader Stock of the Month: January 2026

Over the past year I’ve tried to educate and stimulate conversation about individual dividend growth companies by posting a new selection each month. My selections, if purchased at market open on the next trading day, earned a healthy return of 8.7% including dividends in 2025. As you can see in the chart, if my simplified assumptions regarding dividend growth and price improvements come true, there is still plenty of estimated price growth remaining in these companies. I’ll pick 12 brand new companies here in 2026, but first I want to highlight the three companies from the 2025 list which have yet to take off, but might perform admirably in 2026: Snap-On (SNA): Raised its dividend by 14% in 2025. Target (TGT): Continued its status as a Dividend King with a small raise in 2025 and will have a new CEO beginning February 1. Domino’s Pizza (DPZ): Share buybacks, dividend growth, and earnings per share growth have all accelerated in recent years, but price is largely unchanged. This month’s featured stock is Abbott Laboratories (ABT). Disclosure: I own a position and presently intend to hold into the future. Disclaimer: For educational purposes only, not investment advice. ABT earns income by developing and selling a wide range of health care products, including pharmaceuticals and medical devices. This business model is complex, but generates high margins. Dividend Highlights: - The current dividend is $2.52 annually, translating to a yield of 2.03% at the current stock price of $124.19. - ABT has increased its dividend for an unbelievable 54 consecutive years, making it a rare Dividend King. These great American companies are rarely on sale. - The average dividend yield over the past 10 years has been 1.85%. Today’s investor will purchase a cash flow stream 10% more valuable than the long-term average. - I typically aim for a 15% Chowder Ratio with new stock purchases. ABT has a very good Chowder Ratio of 13.9%! Investment Performance: - An investor who bought $10,000 worth of ABT 10 years ago and reinvested all dividends would have experienced total returns of 241.2% with a current value of $34,122. This trails a broad market index (like the S&P 500), which is always an important consideration when pursuing a portfolio of individual stock holdings. - The 2016 investor initially bought the stock at a yield of 2.31%, expecting $1.04 per share in their first year of ownership. Today, that same investor is set to earn $2.52 per share, resulting in a yield on cost of 5.61%. As with all of my Stock of the Month selections, patience has paid off for long-term investors! Future Outlook: - While the future is always uncertain, investing in Abbott Laboratories comes with several potential rewards, including annual dividend increases, price improvements, and high likelihood for ongoing dividends. - The company’s annual dividend increase is typically announced during December for the upcoming year. The dividend increase for 2026 was a respectable 6.8%. - Assuming a steady dividend growth rate of 7% until 2031, and a return to the average dividend yield of 1.85%, today’s investor might have stock worth $190.27 (53% price return) and earn a yield on cost of 2.83% after 5 years of investment. - The company’s dividend payout ratio is only 30%, so there is plenty of room for ongoing dividend growth in addition to other cash needs the company has, including acquisitions or share buybacks. Conclusion: - For the above reasons, ABT is my choice for Stock of the Month and is well-positioned to continue its long-term creation of shareholder wealth. Portfolio Performance: - The 2025 Stock of the Month portfolio is up 7.0% in price and has earned 1.68% in dividends for a total return (dividends not reinvested) of 8.7%. This is favorable to SCHD’s 5.4% total return over the same time period. Links to my previous selections are included in the comments. Share your thoughts on ABT or what my February pick should be in the comments below!