3M Company (NYSE:MMM) is a diversified technology company with worldwide operations. The company has leading positions in consumer and office; display and graphics; electronics and telecommunications; health care; industrial; safety, security and protection services; transportation and other businesses. MMM is an integrated enterprise characterized by substantial inter-company cooperation in research, manufacturing and marketing of products. MMM was founded in 1902 and is headquartered in St. Paul Minnesota.
I'm busy consolidating several portfolios into DivGro. Previously, I transferred stocks from my Scottrade portfolio to DivGro. Now I'm starting to transfer stocks from my Roth IRA and my traditional IRA into DivGro. In the process, I'm providing details about past transactions and I'll be explaining why I'm a shareholder.
I bought 16 shares of MMM at $159.60 and at an average yield on cost (YoC) of 2.78%. My buy is indicated in the following chart, which shows a 5-year price history of MMM.
Transactions
I bought 16 shares of MMM at $159.60 and at an average yield on cost (YoC) of 2.78%. My buy is indicated in the following chart, which shows a 5-year price history of MMM.
| 2016-03-04 | Bought: 16 shares of MMM at $159.60 per share: | $ | 2,553.61 |
| Total Capital Invested | $ | 2,553.61 | |
| Total Dividends Received: | $ | 0.00 |
With this transfer, DivGro's projected annual dividend income (PADI) increases by $71.04. I have not received any dividend income from MMM yet.
Why MMM?
MMM is a Dividend Champion with a steak of 58 years of dividend increases. The company pays quarterly dividends of $1.11 per share in the months of March, June, September and December.
Here are more reasons I like MMM and why I decided to transfer the shares to my DivGro portfolio:
Here are more reasons I like MMM and why I decided to transfer the shares to my DivGro portfolio:
- The company has a long history of returning capital to shareholders. In addition to the streak of 58 years of dividend increases, MMM has paid dividends without interruption for 98 years. The company is a member of the S&P 500 Dividend Aristocrats.
- MMM recently announced accelerated rates of dividend growth and share buybacks. While the company's 10-year DGR (dividend growth rate) is 9.3%, the 3-year DGR is 20.2%.
- The company is quite profitable given its modest capital deployment. Consumables represent about 50% of MMM product portfolio.
- MMM's strong brand recognition is a unique advantage. According to Morningstar, the company has a wide economic moat and an exemplary stewardship rating.
- Morningstar gives MMM an AA- credit rating and a fair value estimate of $160. S&P Capital IQ also assigns an AA- credit rating to MMM.
Do you own shares of MMM? Do you think the stock trading at, above, or below fair value? Please share your ideas about MMM in the comments section below.
DivGro,
ReplyDeleteYou're right to stay with them as you move somethings around (shuffle board!). When tough times hit the economy, companies like 3M, GE, and PM seem to hold their value unlike any others. It pays to have them in your back pocket when that sort of things shows up.
-Dividend Reaper
Thanks for visiting and commenting, Dividend Reaper!
DeleteI agree, 3M is one of those companies you can hold onto in good times and bad. I wish I could pick up more shares at a reasonable valuation. Right now the stock seems to be fairly valued, or perhaps even slightly overvalued.
Cheers!
DivGro,
ReplyDeleteI recently purchased 3M as well! Although just about 1/5th of your investment! Hope to add to it in the future
-The Dividend Mogul
Nice buy, Dividend Mogul! I really like 3M and I think its a great dividend growth stock to own.
DeleteTake care,
FerdiS