Diversified technology conglomerate
) has recently announced a dividend of 63.5 cents per share or
$2.54 on an annualized basis for second quarter 2013. The
dividend is payable on Jun 12 to shareholders of record as of May
3M has paid consecutive quarterly dividends for over 96 years.
Based on the closing price of $110.59 as of May 14, 2013, the
proposed dividend affirms a yield of 2.3%.
In addition, 3M has a share repurchase program in place, whereby
it can repurchase shares worth $7.5 billion over a period of
time. As of Mar 31, 2013, approximately $6.9 billion remained
available under the existing share repurchase authorization.
3M has consistently returned significant cash to its
shareholders. The company had reportedly returned $32 billion to
its shareholders over the last 10 years through a combination of
dividends and share repurchase transactions, accounting for about
89% of the reported net income. During the last reported quarter,
3M paid cash dividends of $440 million compared to $410 million
in the first three months of 2012.
The company also has a healthy liquidity position. Cash and cash
equivalents as of Mar 31, 2013 were relatively strong at $2.9
billion, while free cash flow for the three-month period was $670
Formerly known as Minnesota Mining and Manufacturing Company, 3M
was founded in 1902 and is currently based in St. Paul,
Minnesota. The company operates as a diversified technology
enterprise with manufacturing operations across 70 countries.
Effective from first quarter 2013, the company has reorganized
its segments to better serve its global customers. The realigned
structure includes five operating segments compared to the
erstwhile six segments of the company. The new business segments
of 3M are Industrial, Safety and Graphics, Electronics and
Energy, Health Care, and Consumer.
3M presently has a Zacks Rank #4 (Sell). Other leading players in
the industry worth reckoning include
Honeywell International Inc.
Macquarie Infrastructure Company LLC
), each carrying a Zacks Rank #2 (Buy).
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