5 Best Diversified Dividend Stocks to Buy Now

2. 3M Company (NYSE:MMM)

Dividend Yield as of October 3: 5.39%

3M Company (NYSE:MMM) is a Minnesota-based multinational conglomerate that operates in the field of industry, healthcare, and consumer goods. In October, Barclays maintained its Underweight rating on the stock with a $130 price target. The firm expressed concerns regarding the company’s performance in the current economic landscape.

3M Company (NYSE:MMM) has been making consecutive dividend payments for the past 100 years and has raised its payouts consistently for the past 64 years. This qualifies the company as one of the best dividend stocks on our list. It currently pays $1.42 per share in quarterly dividends and has a dividend yield of 5.39%, as of October 3.

In Q2 2022, 3M Company (NYSE:MMM) reported $1.1 billion in operating cash flow, up from $1.01 billion in the previous quarter. The company’s free cash flow grew to $743 million, from $587 million a quarter earlier. During the quarter, it paid nearly $800 million to shareholders in dividends.

At the end of Q2 2022, 54 hedge funds in Insider Monkey’s database owned stakes in 3M Company (NYSE:MMM), up from 51 in the previous quarter. These stakes are collectively valued at over $1.38 billion. Ken Fisher, Jim Simons, and Cliff Asness were some of the company’s major stakeholders in Q2.

Mayar Capital mentioned 3M Company (NYSE:MMM) in its Q2 2022 investor letter. Here is what the firm has to say:

“We also bought back into 3M (NYSE:MMM) as the stock reached attractive levels. We’d sold our shares in 3M last year when the price exceeded our estimated fair value, and as better opportunities to invest in presented themselves at the time. Nonetheless, we’ve always liked this business with its diversified revenues, its R&D leadership and its stable margins.