Why the dividend investor may take a look at NYSE:MMM.

Discover 3M CO (NYSE:MMM)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:MMM showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

Dividend Assessment of NYSE:MMM

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:MMM was assigned a score of 8 for dividend:

• MMM has a Yearly Dividend Yield of 6.60%, which is a nice return.
• Compared to an average industry Dividend Yield of 6.97, 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 2.45.
• 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.
• MMM's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Looking at the Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:MMM, the assigned 5 for health provides valuable insights:

• With an excellent Altman-Z score value of 2.76, MMM belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
• MMM has a debt to FCF ratio of 3.17. This is a good value and a sign of high solvency as MMM would need 3.17 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 3.17, MMM belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.

Understanding NYSE:MMM's Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:MMM scores a 6 out of 10:

• MMM has a better Return On Invested Capital (14.08%) than 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 7.86%.
• The 3 year average ROIC (14.01%) for MMM is below the current ROIC(14.08%), indicating increased profibility in the last year.
• MMM has a Operating Margin of 17.66%. This is amongst the best in the industry. MMM outperforms 90.00% of its industry peers.
• The Gross Margin of MMM (43.77%) is better than 100.00% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

Check the latest full fundamental report of MMM for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.