5 Dividend Stocks for Passive Income

4. 3M Company (NYSE:MMM)

Dividend Yield as of July 28: 3.29%

3M Company (NYSE:MMM) is a Minnesota-based multinational manufacturing company. The stock gained 6% on July 26 as it announced the plan to spin off its healthcare business with better growth and investment initiatives.

In Q2 2022, 3M Company (NYSE:MMM) reported an operating cash flow of $1.1 billion and generated $1 billion in free cash flow. The company paid approximately $800 million in dividends during the quarter. It currently pays a quarterly dividend of $1.49 per share. 3M Company (NYSE:MMM) maintains a 64-year track record of dividend growth with a 5-year CAGR of 5.38%. Its payout ratio stands at 82.9%. As of July 28, the stock’s dividend yield was recorded at 3.29%.

Following the company’s Q2 report, Street analysts are positive about the company’s future earnings. In July, both Deutsche Bank and Wells Fargo raised their price targets on 3M Company (NYSE:MMM) to $148 and $144, respectively.

3M Company (NYSE:MMM) was a popular buy among hedge funds in Q1, according to Insider Monkey’s database. The company was a part of 51 hedge fund portfolios, up from 41 in the previous quarter. The stakes owned by these funds are collectively valued at over $1.5 billion.