Is NYSE:MMM suited 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.

Dividend Assessment of NYSE:MMM

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:MMM has achieved a 7 out of 10:

• With a Yearly Dividend Yield of 5.61%, MMM is a good candidate for dividend investing.
• MMM's Dividend Yield is rather good when compared to the industry average which is at 8.12. MMM pays more dividend than 90.00% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.45, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

Assessing Health Metrics for NYSE:MMM

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:MMM, the assigned 6 reflects its health status:

• MMM has a better Altman-Z score (2.87) than 90.00% of its industry peers.
• The Debt to FCF ratio of MMM is 3.30, which is a good value as it means it would take MMM, 3.30 years of fcf income to pay off all of its debts.
• MMM has a Debt to FCF ratio of 3.30. This is amongst the best in the industry. MMM outperforms 100.00% of its industry peers.

Profitability Examination for NYSE:MMM

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:MMM, the assigned 6 is noteworthy for profitability:

• The Return On Invested Capital of MMM (13.45%) is better 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 7.30%.
• MMM's Profit Margin has improved in the last couple of years.
• MMM has a Operating Margin of 16.25%. This is amongst the best in the industry. MMM outperforms 90.00% of its industry peers.
• MMM's Gross Margin of 44.07% is amongst the best of the industry. MMM outperforms 100.00% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

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

Disclaimer

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.