Is NYSE:MMM a Good Fit for Dividend Investing?

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.

Analyzing Dividend Metrics

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 7 for dividend:

• MMM has a Yearly Dividend Yield of 6.21%, which is a nice return.
• Compared to an average industry Dividend Yield of 5.64, MMM pays a better dividend. On top of this MMM pays more dividend than 90.00% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.34, MMM pays a better dividend.
• MMM has paid a dividend for at least 10 years, which is a reliable track record.
• MMM has not decreased their dividend for at least 10 years, which is a reliable track record.

A Closer Look at Health for NYSE:MMM

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 2.74, MMM belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
• With a decent Debt to FCF ratio value of 4.60, MMM is doing good in the industry, outperforming 70.00% of the companies in the same industry.
• MMM has a Current ratio of 1.64. This is in the better half of the industry: MMM outperforms 80.00% of its industry peers.
• MMM's Quick ratio of 1.27 is fine compared to the rest of the industry. MMM outperforms 80.00% of its industry peers.

Understanding NYSE:MMM's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:MMM, the assigned 5 is a significant indicator of profitability:

• MMM has a better Return On Invested Capital (13.07%) 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 7.55%.
• With an excellent Operating Margin value of 18.64%, MMM belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
• MMM has a Gross Margin of 44.55%. This is amongst the best in the industry. MMM outperforms 100.00% of its industry peers.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

Keep in mind

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.