Earlier this month, I’d discussed Coca-Cola stock. Income investors should always target stocks that have achieved a long history of dividend growth. In the case of Coca-Cola, the company had accomplished this for over 50 years. This makes it a dividend king.
3M Co (NYSE:MMM) deserves a crown of its own. 3M is a diversified industrials business that has been in existence since 1902. Over half of the company’s revenue comes from outside the United States.
3M stock has climbed 9.7% in 2019 as of close on March 19. The stock is still down 9.7% year over year. Shares were trading at an enticing discount in late December, as was much of the broader market. An early rally should not fool investors. We are likely headed for more volatility, which is why a stock like 3M is so valuable.
The company is broken up into five major segments; Industrial, Healthcare, Safety & Graphics, Electronics & Energy, and Consumer Products. That is a lot of ground to cover, and 3M is extremely well diversified. 3M has paid consistent dividends for over 100 years. To call it a king is an understatement.
As impressive as its history of dividend-growth is, its dividend does not pack a huge punch. The stock offers a quarterly dividend of $1.44 per share. This represents a 2.6% yield.
While unremarkable compared to other high-yield options, 3M makes up for it with its steady history of dividend-growth and its wide economic moat.
