Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Dividend Aristocrats Part 48: 3M Co (MMM)

Page 1 of 3

3M Co (NYSE:MMM) has paid dividends for 99 years without interruption.

The company has paid increasing dividends for 57 consecutive years. The company’s long dividend streak makes it one of only 17 Dividend Kings – dividend stocks with 50+ years of rising dividends.

Among the investors tracked by Insider Monkey, 42 funds held shares of 3M at the end of the third quarter of 2015, versus 40 funds a quarter earlier. These funds amassed 2.20% of the company’s outstanding stock at the end of September. Edgar Wachenheim’s Greenhaven Associates and Cliff Asness’ AQR Capital Management held substantial positions in 3M at the end of September, reporting 2.25 million shares and 924,749 shares, respectively, in their last 13F filings.

Despite its long history of success, 3M has faced headwinds recently. The strong United States dollar combined with a global growth slowdown has sent 3M stock down 14% in the past year.

The sell-off has caused 3M’s dividend yield to rise to nearly 3%. The opportunity to pick up 3M stock at ~3% yields has only come during large sell offs in the last 20 years as the company’s dividend yield history image below shows:

3M Dividend Yield History
Note: The red line shows 3% dividend yield

Getting To Know 3M

3M is one of the largest diversified manufacturers in the world. 3M’s market cap versus its largest competitors’ market caps is shown below for comparison:

– General Electric (GE) has a market cap of $285 billion

– 3M has a market cap of $86 billion

– Honeywell (HON) has a market cap of $75 billion

– Danaher (DHR) has a market cap of $58 billion

– ABB (ABB) has a market cap of $39 billion

– Illinois Tool Works (ITW) has a market cap of $30 billion

– Eaton (ETN) has a market cap of $22 billion

3M Co (NYSE:MMM) is the second largest publicly traded corporation in the diversified machinery industry.

3M operates in 5 segments. Each segment’s percentage of total operating income generated for 3M through the first 9 months of fiscal 2015 is shown below:

– The Industrial segment generated 31% of total operating income

– The Safety & Graphics segment generated 18% of total operating income

– The Health Care segment generated 22% of total operating income

– The Electronics & Energy segment generated 16% of total operating income

– The Consumer segment generated 14% of total operating income

The industrial segment is 3M’s largest based on operating income. The segment produces: adhesives, abrasives, tapes for industrial purposes, filtration systems, specialty additives, auto body repair solutions, and car DIY kits.

The safety and graphics segment produces respiratory, hearing, and eye protection solutions. It also creates reflective signs for traffic direction, ID cards like passports, roofing material, and building and architectural design safety solutions.

The health care segment produces skin and wound care products, infection prevention products, oral care, drug delivery inhalation systems, and coding and reimbursement software, among other health related products.

The company’s electronics and energy segment produces electrical vinyl rubber, flexible circuits, insulation tapes, and fiber and copper splicing, among other products.

The fifth and final consumer segment generates the least revenue for 3M, but is also the most familiar to US consumers. The consumer segment produces tape, home air filtration products, and Post It notes, among other products.

3M is diversified by product type as well as by geography. It is rare to find a company that can be so profitable in so many diverse industries.

3M’s broad success combined with its impressive dividend history shows clear evidence of a strong and durable competitive advantage.

Follow 3M Co (NYSE:MMM)
Trade (NYSE:MMM) Now!
Page 1 of 3

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!