(281)-719-8904 KenFaulkenberry@AAAMP.com
3M Logo

3M Dividend

(updated 2/23/2018)

The 3M dividend has been paid continuously since 1916 and increased for 59 consecutive years; qualifying the company as a
Dividend King, Dividend Aristocrat, and Dividend Champion.

Price: $237.02
Dividend Yield: 2.3%

Current Dividend: $5.44
Cash Flow From Operations (CFO) Per Share (tmm): $10.18
Free Cash Flow Per Share (ttm): $7.94

Market Capitalization: $141 B
Enterprise Value: $150 B

       Dividend Analyzer Checklist

                        (updated February 2018)

Valuation Score 11/34 points)

Free Cash Flow Yield (ttm): 3.2% (6/17 points)
EV to EBIT (ttm): 20.0
EV to EBITDA (ttm): 17.2  (5/17 points)
Price to Sales Ratio (ttm): 4.8
Price to Book Value (ttm): 12.7
Price to Earnings Ratio (P/E) (ttm):  31
PE 10: 38

Profitability Score (20/33 points)

Operating Earnings Yield (ttm): 5.1% (5/15 points)
Net Income (ttm): $4858 M
Gross Profit (ttm): $15545 M
Total Assets: $37987 M
Gross Profitability Ratio = GP / Total Assets: 41% (15/18 points)
Cash Return On Invested Capital (CROIC)(tttm): 21%
Return on Invested Capital (ROIC): 21%

 

Dividend Safety Score (13/33 points)

Dividend Payout Ratio (ttm): 58%
Cash Dividend Payout Ratio (ttm): 58%  (6/12 points)
Net Financial Debt: $9820 M
Total Assets: $37987 M
Net Financial Debt / Total Assets: 26% (5/12 points)
Net Financial Debt to EBITDA (ttm): 133%
Piotroski Score (1-9) (TTM): (2/9 points)

TOTAL POINTS – (44/100) (50 is an average score)

Earnings Report: 1/25/18
Next Earnings Report: 4/25/18

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Rankings & Recommendations

(updated February 2018)

3M (MMM)is ranked #274 (out of 432) and #77 (out of 97) in the Industrial Sector by the Dividend Analyzer.

Type of Investor / Recommendation

Large Diversified Dividend Portfolios / Below Average Option
Looking For Exposure to Industrial Sector / Avoid
Deep Value Investors / Avoid

Position Disclosures:
DVB Portfolio Stocks – None
AAAMP Global Value Portfolio – None
AAAMP Retirement Growth & Income Portfolio – None
AAAMP Treasure Trove Twelve Portfolio – None

Company Description

Sector: Industrials
Industry: Diversified Industrials

3M (MMM) is a diversified industrial conglomerate which manufactures over 55,000 products available for sale in over 200 countries. The company calls itself a “technology company with a global presence in the following businesses”: Industrial (tapes, adhesives, specialty materials, etc.; Safety and Graphics (personal protection products); Health Care (medical and surgical supplies); Electronics and Energy (solutions for electronic display, touch screens, computer screen filters, etc.); and Consumer (office and home products).

SWOT Analysis

Strengths

Strategic advantages include a strong brand, patents, technology, and being a low cost producer. Approximately 50% of 3M products are consumables, providing a less cyclical revenue stream to balance their portfolio.

3 M is known for innovation over decades due to their successful research and development. The company is well diversified in product offerings and geography, and has a long term record of growth. They have the infrastructure and proven ability to bring new products to market.

Weaknesses

Many 3M products have a low barrier to entry meaning the company has to be careful about pricing its products. With so many patents the company has to spend heavily on litigation.

Opportunities

3M is expanding rapidly in emerging markets. The company is good at making small acquisitions that propel growth. Global fluctuations in input prices are trending in the company’s favor.

Threats

Product life cycles require the company to constantly innovate. Without innovation the company would not be able to make growth projections. A softening of global economies and rising U.S. dollar could hurt earnings.

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Disclaimer: While Arbor Investment Planner has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability, or completeness of third-party information presented herein. The sole purpose of this analysis is information. Nothing presented herein is, or is intended to constitute investment advice. Consult your financial advisor before making investment decisions.
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