3M (MMM) Declares $1.50 Dividend

3M said on February 7, 2023 that its board of directors declared a regular quarterly dividend of $1.50 per share ($6.00 annualized). Shareholders of record as of February 16, 2023 will receive the payment on March 12, 2023. Previously, the company paid $1.49 per share.

At the current share price of $115.25 / share, the stock's dividend yield is 5.21%. Looking back five years and taking a sample every week, the average dividend yield has been 3.44%, the lowest has been 2.23%, and the highest has been 5.50%. The standard deviation of yields is 0.68 (n=236).

The current dividend yield is 2.59 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 0.57. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.01%, demonstrating that it has increased its dividend over time.

Analyst Price Forecast Suggests 8.74% Upside

As of February 9, 2023, the average one-year price target for 3M is $125.32. The forecasts range from a low of $107.06 to a high of $220.50. The average price target represents an increase of 8.74% from its latest reported closing price of $115.25.

The projected annual revenue for 3M is $34,318MM, an increase of 0.26%. The projected annual EPS is $10.57, an increase of 3.52%.

What is the Fund Sentiment?

There are 2874 funds or institutions reporting positions in 3M. This is a decrease of 96 owner(s) or 3.23% in the last quarter. Average portfolio weight of all funds dedicated to MMM is 0.33%, a decrease of 9.75%. Total shares owned by institutions decreased in the last three months by 0.84% to 388,426K shares. The put/call ratio of MMM is 1.14, indicating a bearish outlook.

What are large shareholders doing?

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 16,731K shares representing 3.05% ownership of the company. In it's prior filing, the firm reported owning 16,755K shares, representing a decrease of 0.14%. The firm decreased its portfolio allocation in MMM by 11.12% over the last quarter.

VFINX - Vanguard 500 Index Fund Investor Shares holds 12,550K shares representing 2.28% ownership of the company. In it's prior filing, the firm reported owning 12,595K shares, representing a decrease of 0.36%. The firm decreased its portfolio allocation in MMM by 12.02% over the last quarter.

Charles Schwab Investment Management holds 12,016K shares representing 2.19% ownership of the company. In it's prior filing, the firm reported owning 11,985K shares, representing an increase of 0.26%. The firm decreased its portfolio allocation in MMM by 11.88% over the last quarter.

Geode Capital Management holds 10,347K shares representing 1.88% ownership of the company. In it's prior filing, the firm reported owning 10,428K shares, representing a decrease of 0.78%. The firm decreased its portfolio allocation in MMM by 12.22% over the last quarter.

State Farm Mutual Automobile Insurance holds 9,557K shares representing 1.74% ownership of the company. No change in the last quarter.

3M Background Information
(This description is provided by the company.)

3M Company is a diversified corporation manufacturing a wide range of products, including abrasives, adhesive tape and related products, and consumer-electronics components. It is headquartered in St. Paul, Minnesota. 3M apply science in collaborative ways to improve lives daily. With $32 billion in sales, 96,000 employees connect with customers all around the world.

This story originally appeared on Fintel.