5 Best Undervalued Dividend Kings to Buy in September

4. 3M Company (NYSE:MMM)

P/E Ratio: 16.28

An American multinational consumer goods company, 3M Company (NYSE:MMM) holds one of the longest dividend growth streaks in the market. The company has been raising its payouts consistently for the past 64 years. Moreover, it has paid uninterrupted dividends to shareholders for over 100 years. The company currently pays a quarterly dividend of $1.49 per share and has an attractive yield of 5.11%, as recorded on September 6.

In Q2 2022, 3M Company (NYSE:MMM) reported an operating cash flow of $1.1 billion and its free cash flow came in at $1 billion. The company’s dividends for the quarter amounted to $800 million, signaling strong FCF generation. It generated 8.7 billion in revenues in Q2 and also reported a 1% year-over-year growth in its organic sales.

In August, Bernstein resumed its coverage of 3M Company (NYSE:MMM) with a Market Perform rating and a $155 price target, highlighting the company’s mid-single digits annual earnings.

At the end of Q2 2022, 54 hedge funds tracked by Insider Monkey had over $1.38 billion worth of investments in 3M Company (NYSE:MMM). In the previous quarter, 51 hedge funds owned stakes in the Minnesota-based company, valued at over $1.53 billion.

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.