Balancing Dividends and Fundamentals: The Case of NYSE:MMM.

3M CO (NYSE:MMM) has caught the attention of dividend investors as a stock worth considering. NYSE:MMM excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Deciphering NYSE:MMM's Dividend Rating

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:MMM has been assigned a 8 for dividend:

• MMM has a Yearly Dividend Yield of 6.54%, which is a nice return.
• Compared to an average industry Dividend Yield of 6.66, MMM pays a better dividend. On top of this MMM pays more dividend than 90.00% of the companies listed in the same industry.
• MMM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.48.
• MMM has paid a dividend for at least 10 years, which is a reliable track record.
• MMM has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• The dividend of MMM is growing, but earnings are growing more, so the dividend growth is sustainable.

ChartMill's Evaluation of Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:MMM scores a 5 out of 10:

• MMM has a Altman-Z score of 2.75. This is amongst the best in the industry. MMM outperforms 100.00% of its industry peers.
• The Debt to FCF ratio of MMM is 3.17, which is a good value as it means it would take MMM, 3.17 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of MMM (3.17) is better than 100.00% of its industry peers.

Looking at the Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:MMM has achieved a 6:

• MMM's Return On Invested Capital of 14.08% is amongst the best of the industry. MMM outperforms 100.00% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for MMM is significantly above the industry average of 7.60%.
• The last Return On Invested Capital (14.08%) for MMM is above the 3 year average (14.01%), which is a sign of increasing profitability.
• Looking at the Operating Margin, with a value of 17.66%, MMM belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
• MMM's Gross Margin of 43.77% is amongst the best of the industry. MMM outperforms 100.00% of its industry peers.

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Our latest full fundamental report of MMM contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.