3M Co (MMM), United Technologies Corporation (UTX): Comglomerates Provide the Best Diversification

Page 1 of 2

3M Co (NYSE:MMM)How do you get the most bang for your buck in the stock market? You buy conglomerates. These mega-firms encompass multiple organizations all striving to achieve in different areas of business.

Berkshire Hathaway

How could you truly expect me to get through this article without a mention of Warren Buffett’s famed Berkshire Hathaway?

The company is engaged in so many different areas of business; it actually becomes too wild to think about. Insurance, rail, clothing, jewelry, private jets, home furniture, and even candy are among the portfolio.

If you elect to pick up the Berkshire Hathaway Inc. (NYSE:BRK.A) ‘A’ shares then you’re looking at paying around $160,000 per share. Luckily the ‘B’ shares linked above are a lot cheaper, and more than likely in your portfolio’s range.

Berkshire Hathaway Inc. (NYSE:BRK.A)’s broad horizon of companies managed to generate $162 billion in sales last year. That’s up a whole lot since 2008 when they managed to generate some $107 billion.

Net income has also been on the rise at Berkshire. In 2008, the company had a net income of $4.99 billion, and as of last year they managed to boost it to $14.82 billion.

I would make Berkshire Hathaway a part of my portfolio, despite the fact that they don’t pay a dividend. The company is well run, and by all expectations should continue to be even when Buffett steps down. Berkshire also participates in large stock buybacks every once in a while, which puts more money into our portfolios.

Growth at Berkshire is expected to be anywhere from 3-8% per year over the next couple of years.

Now To The Dividends!

Hey, Berkshire Hathaway Inc. (NYSE:BRK.A) may not pay dividends, but that doesn’t mean we have to do without. 3M Co (NYSE:MMM) is another multinational conglomerate that happens to yield investors a nice 2.4%.

3M Co (NYSE:MMM) is the name behind a variety of consumer brands, and they happen to dabble a bit in infrastructure too. They’re no doubt most familiar for Post-It and Scotch tape, but did you also know that 3M could help you with your upstream oil & gas problems? How about keeping your animal safe and healthy?

These thousands of products are helping 3M Co (NYSE:MMM) beat the market and continue down a path of earnings, and even net income growth. Five-year growth in revenues is at a steady 4.7% per year while earnings are growing at 4.1% per year over the same time frame.

Dividends are also growing at 3M Co (NYSE:MMM). Who doesn’t want that? Those dividends are growing by some 3.9% per year. That’s pretty good growth on dividends from a pretty solid company.

Analysts on the stock have growth in earnings being around 9% per year in each of the next two years. This should definitely help 3M Co (NYSE:MMM) at least keep pace with the broader market, if not beat it.

Military

Wait, military? Actually United Technologies Corporation (NYSE:UTX) generates more of their sales from divisions outside of their aircraft engine department. They also sell air conditioning units and elevators.

Page 1 of 2

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!