Over the past few years, Abbott Laboratories' (ABT -0.24%) business has been a bit of a roller coaster. The pandemic disrupted its medical device business, but it was later able to smooth out those losses by quickly developing and marketing COVID-19 diagnostic tests. However, sales of these products started declining as the outbreak receded, leading to more uneven revenue growth for the company. Throughout it all, one of Abbott Laboratories' segments has been its best and most consistent growth driver: Diabetes care.

Abbott Labs recently added a new product to this business that could help improve its performance. Let's review the details and find out what it all means for investors.

The leader in continuous glucose monitoring

Abbott Labs' key product line in its diabetes care segment is the FreeStyle Libre, a portfolio of continuous glucose monitoring (CGM) devices that allow diabetes patients to keep track of their blood glucose levels. Libre sales have been on fire. They generally raise the company's average revenue growth. In the second quarter, Abbott Laboratories' sales grew 4% year over year to $10.4 billion. The company's top line increased 9.3% organically if we exclude the effect of its coronavirus diagnostic segment.

But even that pales compared to the FreeStyle Libre, whose sales of $1.6 billion experienced 20.4% organic growth compared to the year-ago period. Abbott Labs is the leader in the CGM market, serving an estimated 6 million patients with its products. However, patients can purchase FreeStyle Libre devices only through prescription, at least in the U.S. (That's not the case in some other countries.)

In June, Abbott Laboratories announced that the U.S. Food and Drug Administration (FDA) had cleared the Libre Rio, a new over-the-counter (OTC) CGM option for type 2 diabetes patients who do not use insulin (the FreeStyle Libre targets insulin and non-insulin users). A simpler, more targeted option, like the Libre Rio, could appeal to non-insulin diabetes patients who were on the fence.

Abbott Labs went even further. It also earned FDA clearance for the Lingo, an OTC CGM option for those who don't have diabetes. They, too, can benefit from tracking their blood glucose levels. The Lingo is built on the platform that has powered the highly successful FreeStyle Libre franchise. According to management, the Lingo and the Libre Rio are part of Abbott Laboratories' plan to grow this portfolio to $10 billion in annual sales by 2028.

So far this year, Libre sales are about $3 billion, which works out to an annual run rate of $6 billion. So, the expanding Libre franchise should remain an important growth driver for Abbott Labs.

Beyond 2028

The opportunities in the CGM market are vast and should allow Abbott Laboratories to perform well beyond 2028. As the company pointed out earlier this year, there are half a billion adults in the world with diabetes, and only 1% of them have access to CGM technology. One reason for this low penetration rate is that many of these patients live in countries where the leaders in CGM, including Abbott Labs, have smaller footprints. However, even in countries where Abbott has a greater prsence, particularly in the U.S., OTC access to CGM devices could help meaningfully increase their use.

Abbott Laboratories' long-term plan is to make headway in this massive market by launching products adapted to different regions. Abbott isn't just a diabetes company, though. The company's portfolio boasts dozens of products across multiple therapeutic areas. Abbott Labs has a long and successful track record of innovation, significant experience in navigating the healthcare industry, and has generally produced excellent returns for long-term investors. The company still has the tools to provide all those perks to those who get in today.

Let's not forget about Abbott Laboratories' impressive streak of 52 consecutive annual dividend increases, which also makes it a top stock to buy and hold for dividend investors -- arguably one of the better ones on the market. There are plenty of reasons to invest in the stock.