Top Tip:  Best Dividend Stocks


Company:  3M

Symbol:  MMM

Shareholder Services company:  Shareowneronline


Blue Chip meter (1 to 4):

Company Description

3M is a diversified industrials company that describes itself as a science-based company.  Producing thousands of imaginative products, they are leaders in many markets, ranging from health care to office products to abrasives and adhesives.  They have a proven track record of applying various technologies, often in combination, to a vast array of real-world customer needs.  They launched a new vision in 2012 whereby they seek to apply their technology to advancing every company, their products to enhance every home and their innovation to improve every life.  Bold vision - but the company has and will continue to deliver.

Key Financial Metrics

Investment Analysis

  • 3M is both a defensive stock (i.e., stock that performs well, relative to the market, in challenging economic times) as well as a large growth company (that should perform well in good economic times).   Both revenues and earnings have steadily risen over the last 5 years, even if both were impacted in 2009.
  • They are getting more financially efficient.  Over the past 10 years their earnings per share has grown 11% per year while revenues has only grown 6%.  And their return on invested capital over the same period has been 22%.  These are excellent results.
  • Dividends have been steadily increasing over the past 5 years, although not as quickly as I'd like to see.  However, when one factors in share repurchases, the total return of capital to shareholders is an astonishing 72%. 
  • Innovation has been and continues to be at the center of their corporate plan.
  • Their new vision sets a real stretch goal for the company and their employees - they seek to reach every company, every home and every life all around the world.
  • This is an excellent long term DRIP candidate in a stellar world-class company.

Other Pertinent Facts

  • Quality of DRIP program[1]:  Excellent (company pays all fees except for sales fees)
  • Am I an investor?  yes, DRIP investor since 2010

[1] Fair ranking out of ranking system of Poor, Fair, Good, Excellent

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