Topic: How To Invest

Dividend Advisor Hotline – Friday, May 17, 2024

Article Excerpt

3M COMPANY, $105.26, New York symbol MMM, is still a buy for long-term gains. The company makes over 55,000 consumer and industrial goods. Its main brands include Post-it notes, Scotch tape, Scotch-Brite cleaning products, Scotchguard protection and Thinsulate insulation. On April 1, 2024, 3M completed its plan to spin off its Health Care division as an independent firm called SOLVENTUM CORP., $62.38, New York symbol SOLV, which is a hold. That business makes products to treat and prevent infection in wounds, dental filling materials, and filtration and purification products. Shareholders received one share of Solventum for every four shares they held. 3M still owns 19.9% of Solventum but plans to sell those shares over the next five years. As a result of the spinoff, 3M is cutting your quarterly dividend by 53.6%. Starting with the June 2024 payment, investors will receive $0.70 a share instead of $1.51. The new annual rate of $2.80 yields 2.7%. The lower dividend rate should be more sustainable without the cash flow from Solventum. Investors…