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.

Three Of My Favorite Dividend Stocks For 2017

This guest post has been written by Mike McNeil, passionate investor, founder of Dividend Stocks Rock and author of The Dividend Guy Blog.

In the beginning of this New Year, many investors review their portfolios. We all hope for a good year on the market and, most importantly, steady dividend growth increases among our portfolio. I selected three companies I think will perform well in 2017 and will increase their dividend payouts.

excellent, business, asia, suit, up, man, outdoor, closeup, leader, guy, thumb, chinese, urban, sign, symbol, finger, male, kong, outside, occupation, east, satisfaction,



Business Model:

3M Co (NYSE:MMM) produces products like Scotch tape, projector systems, Post-it notes, Tartan track, and Thinsulate. This is a conglomerate that produces products for many industries and for both personal and business use, and their manufacturing, research, and sales offices are all over the world.

Main Strengths:

3M shows all the right characteristics to be part of a dividend growth portfolio. It is a leader in many of its products and spends more than any of its competitors in R&D. This makes 3M a chief of innovation that is always a few years ahead of the competition. By improving its existing products and generating new ones, 3M ensures it will grow its revenue over time.

The company also has strong experience in making several “small” acquisitions throughout the years and integrating them perfectly into its strong business model. Finally, 50% of its revenue is coming from repetitive sales, generating a never-ending source of cash flow.

Potential Risks:

There isn’t much risk associated with 3M besides the fact that its growth in the upcoming years may not be spectacular. This is not a company to buy in the hopes of it showing double-digit returns, but this is a company you can buy and sleep well at night.

Dividend Growth Perspective:

3M Co (NYSE:MMM) has been paying dividends to its shareholders for over a century and shows more than 50 consecutive years of increases. Over the past couple of years, 3M has been even more generous with its dividend increases and the payout ratio has jumped to 54%. Still, there is plenty of room for management to increase it in the future.

Investment Thesis:

3M’s competitive advantages are legendary. Industrial clients are reluctant to abandon such a world class company for any competitors, as they know 3M will deliver quality products. Consumers continue to buy post-its again and again, as the product is well designed, well known and, most importantly, works perfectly. 3M shows one of the strongest business models among the dividend kings and its dividend growth potential will continue to be one of its most interesting characteristics for investors.

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

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.