3M Company (MMM): High-Margin Industrial Powerhouse Attracts Defensive Investors

We just covered the 14 Best Defensive Stocks to Invest In Now and 3M Company (NYSE:MMM) ranks 10th on this list.

A major defensive catalyst for 3M Company (NYSE:MMM) is the successful separation of the healthcare business into Solventum. By spinning off its healthcare wing, finalized in 2024 and fully stabilized by early 2026, 3M has returned to its roots as a high-margin industrial powerhouse. In the Q1 2026 earnings report released recently, 3M reported an adjusted operating margin of 23.8%, up 30 basis points year-over-year. This focus on commercial excellence and manufacturing efficiency provides a more predictable earnings stream for defensive holders. The products marketed by the firm are often non-discretionary components in larger industrial processes. With over 60,000 products, 3M is embedded in everything from semiconductor manufacturing to aerospace and automotive safety.

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Even during economic slowdowns, factories and infrastructure projects require 3M Company (NYSE:MMM) adhesives, abrasives, and personal safety equipment. Despite geopolitical tensions in early 2026, 3M has reported 1.2% adjusted organic sales growth, led by strength in its Safety & Industrial and Electronics segments. The company offers a dividend yield of approximately 2.1%. While the payout was right-sized following the Solventum spinoff, it remains a core priority. In Q1 2026 alone, 3M returned $2.4 billion to shareholders through dividends and buybacks. Trading at a forward P/E of roughly 17x, 3M is considered reasonably valued compared to its peer group, like Honeywell.

While we acknowledge the risk and potential of MMM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MMM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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