3M has now settled the most significant of the lawsuits related to some of its vast product range. It’s also stopping production of the chemicals in question in 2025.
In the meantime, the company remains on solid ground financially while the stock trades at just 9.7 times the company’s 2023 earnings forecast.
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3M COMPANY (New York symbol MMM; www.3m.com) produces more than 60,000 items, including air purifiers, adhesives, bandages and components for medical devices. Its main brands include Post-it notes, Scotch tape, Scotch-Brite cleaning products, Scotchguard protection and Thinsulate insulation.
3M plans to spin off its Health Care division as a separate company in the first half of 2024. That business makes products that treat and prevent infections in wounds, dental filling materials, and filtration and purification products. It supplies 25% of 3M’s sales. The company will continue to own 19.9% of the Health Care business, but expects to sell that stake over time.
The company has agreed to settle lawsuits related to the release of polyfluoroalkyl substances (PFAS) from its operations in several U.S. cities. PFAS chemicals resist heat, oil, stains and water and are used in a number of products. The U.S. Center for Disease Control recognizes that exposure to high levels of PFAS may impact the immune system. 3M plans to stop producing PFAS in 2025.
Dividend Stocks: 3M’s Risk is now reduced with the payout remaining high
As a result, 3M will pay a total of $10.3 billion over the next 13 years.
The company has also agreed to settle claims regarding defects in earplugs it manufactured for the U.S. Army. The lawsuits allege that the earplugs caused hearing loss in combat soldiers.
3M will pay a total of $6.0 billion, consisting of $5.0 billion in cash and $1.0 billion in common shares, between 2023 and 2029.
These settlements help cut 3M’s long-term risk, and help protect the dividend. Based on the current rate of $6.00 a share, which yields a high 6.8%, the company’s annual dividend payments total roughly $3.3 billion.
With the March 2023 payment, 3M raised your quarterly dividend 0.7%. The firm has paid dividends continuously for over 100 years and has increased that rate each year for the past 65 years. Including the latest raise, 3M has increased its annual dividend rate by an average 2.0% in the past 5 years. Its TSI Dividend Sustainability Rating is Above Average.
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Privacy Policy and Terms of Use
The Successful Investor Inc. and its affiliate Successful Investor Wealth Management (referred to hereafter as TSI Network) know that you care how information about you is used and shared, and we appreciate your trust that we will do so carefully and sensibly. This notice describes our privacy policy. By visiting websites owned by or associated with TSI Network, you are accepting the practices described in this Privacy Policy.
This privacy policy is applicable to all TSI Network Visitors, Clients, Employees, Suppliers, Web sites, Management, and all other interested parties. Any links to or from our site are not covered by this policy. We encourage you to read the privacy policies of every site that you visit.
The privacy of the site/store visitor is very important to TSI Network, and is respected at all times. The information we receive from customers helps us to personalize and continually improve your online experience at TSI Network.
We do not collect or disclose personal information, except when it is provided to us voluntarily by the site/store visitor with their consent.
We store subscriber and password files containing personal information securely. These files are stored in secure areas that are not accessible to the general public. We are always working to ensure the security of your personal information.
We are continuously in the process of improving our sites and services. If any new features or policies require a change to this current policy, we will post a clear notice of this change on pages of our site where the privacy policy appears. The principle behind this privacy policy is to collect information with your knowledge and consent.
What personal information do we collect?
The information we receive from customers helps us personalize and continually improve your online experience at TSI Network. TSI Network may collect personal information online for all legal purposes, which include, but are not limited to:
Information You Give Us: We receive and store any information you enter on our website or give us in any other way through sign-up forms or ordering forms for publications and services. You can choose not to provide certain information, but then you might not be able to take advantage of many of our services and features. We use the information that you provide for such purposes as responding to your requests, customizing your web browsing experience for you, improving our website, and communicating with you.
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Changes to this Policy
This Policy is the sole authorized statement of TSI Network's practices with respect to the collection of personal information through TSI Network's websites and the subsequent use and disclosure of such information. Any summaries of this Policy generated by third party software or otherwise (for example, in connection with the "Platform for Privacy Preferences" or "P3P") shall have no legal effect, are in no way binding upon TSI Network, shall not be relied upon in substitute for this Policy, and neither supersede nor modify this Policy.
TSI Network may revise this Policy from time to time.
Legal Notices and Disclaimers
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