Monday, August 8, 2016

Racing To Dividends With 3M Company

dividend growth investing, value investing, discounted cash flow analysis
3M Company (MMM) Dividend Growth Stock Analysis 2016
Diversification plays a key role in risk management for any investment plan as well as for running a company. If a company relies on income from just one segment of the economy, the economic cycles are felt especially hard in the bad times.

3M Company (NYSE:MMM) is a one-stop shop for diversification with 5 business segments that range across the economy: Industrial, Safety and Graphics, Health Care, Electronics and Energy, and the Consumer. 3M Company also gives global diversification, with 60% of 2015's sales being derived internationally.
The geographic and product diversification allows different segments of the business to zig when others zag. In other words, the business can continue to march forward more often than not even if some of the segments are going through a rough period.
Periodically, I like to re-analyze the companies that I own to update the valuation in order to determine if now is the time to make bolt on purchases.
How about that dividend?
As a dividend growth investor, one of the first things I examine is whether a company has consistently paid and grown the dividend payout. You'd be hard pressed to find many companies with a better track record than 3M.
Assuming the two remaining 2016 dividend payments are made, 2016 will mark a huge milestone for 3M. This will be the 58th consecutive year of dividend increases and also marks the 100th consecutive year of uninterrupted dividend payments. That firmly gives it the title of Dividend Champion.
Continue reading the article on Seeking Alpha.

Seeking Alpha - 3M Company (MMM) Dividend Growth Stock Analysis 2016

1 comment:

  1. I'm long MMM. My fair value estimate is $158, so I feel MMM is overvalued by 13%. It's a great company but too expensive (as usual) to add at these levels. Great analysis and thanks for sharing!

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