3M Cut Its Dividend: It's Time to Buy the Stock
In its first quarter earnings announcement last week, 3M (NYSE: MMM) revealed that it will be cutting its dividend -- and that's actually good news. Sure, some income-focused investors will inevitably be disappointed, but it's the right thing to do for the company's development and to help remove uncertainty around the stock.
In addition, some other positives surfaced in the earnings report that make the stock an attractive buy. Here's what you need to know.
Management hasn't given a figure for the new dividend, but it will be declared in May. However, we do know it will be "approximately 40% of adjusted free cash flow," according to Executive Chairman (and former CEO) Mike Roman on the earnings call.
Source Fool.com
