Analyzing NYSE:MMM's Dividend Potential.

Consider 3M CO (NYSE:MMM) as a top pick for dividend investors, identified by our stock screening tool. NYSE:MMM shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Dividend Assessment of NYSE:MMM

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:

• With a Yearly Dividend Yield of 6.52%, MMM is a good candidate for dividend investing.
• Compared to an average industry Dividend Yield of 6.11, 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 2.40.
• 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.
• The dividend of MMM is growing, but earnings are growing more, so the dividend growth is sustainable.

ChartMill's Evaluation of Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:MMM has received a 5 out of 10:

• MMM's Altman-Z score of 2.77 is amongst the best of the industry. MMM outperforms 90.00% 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 90.00% 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:

• With an excellent Return On Invested Capital value of 14.08%, MMM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for MMM is significantly above the industry average of 7.56%.
• The 3 year average ROIC (14.01%) for MMM is below the current ROIC(14.08%), indicating increased profibility in the last year.
• With an excellent Operating Margin value of 17.66%, MMM belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
• With an excellent Gross Margin value of 43.77%, MMM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.

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For an up to date full fundamental analysis you can check the fundamental report of MMM

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.