3M Company (NYSE:MMM) is growing its FCF very well, and as a result, MMM stock is likely to move up at least 44% over the next or so. Right now 3M pays a dividend of $5.88 per share, which is well covered by its free cash flow, as I mentioned in a recent article. Moreover, this represents about a 4% dividend yield, but the stock has had a lower average dividend yield of just 2.78% over the past four years.
Management reiterated this stance in its earnings call discussion on the dividend, saying “Our first priority is to invest in our business second, maintaining our dividend and lastly flexible deployment for M&A and share repurchases.” This makes it very clear the 3M is here to stay. So, using the average dividend yield of the past four years, I estimate the stock is worth $211.55, or 44.4% higher than today. So I believe MMM represents good value for the patient, long-term investor.
Source: InvestorPlace
Related Articles:
- 12 Dividend Stocks and 3 ETFs To Balance Your Asset Allocation
- 3 Communications Services Stocks With Increasing Dividends
- 4 Stocks With Room To Grow Their Dividend
- 6 Stocks That Have Paid Dividends For Over 100 Years
- Love People, Use Dividend Stocks
3M Stock Drives Its Value by Prioritizing Its Dependable Dividend
Posted by D4L | Friday, June 12, 2020 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
In an attempt to put a lid on inflation, the Federal Reserve has stated that it intends to raise its benchmark federal-funds rate by 0.25% a...
-
If you have contemplated selling shares of some of the companies you own this year, you likely aren't alone. Considering how volatile th...
-
Readers may want to do a stock valuation on the stocks in their favorite sectors and wait patiently until they become cheap. Patience is a v...
-
Dividend growth stocks are among our favorite investment groups because you get so much bang for your buck. Not only do the companies pay di...
-
Dividend utility stocks might seem bad for your portfolio during high inflation and rising interest rates. However, the sector has done well...
-
Companies that have either been through past downturns or have the pricing power to offset the costs of inflation provide a crucial element ...
-
Dividend reinvestment plans, or DRIPs, can be effective ways to accumulate shares of high-quality companies for those with limited capital t...
-
If you're wishing you had a little more exposure to income investments right now and a little less exposure to growth, you're not al...
-
We picked up two investments that carry excellent yields combined with some healthy upside in the share price. We also dropped one of our po...
-
Do you have the stomach for contrarian investing - betting against the crowd? Sometimes that's necessary in order to find value. Why buy...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.