The past few years haven't been good for 3M (NYSE: MMM) shareholders. Then again, the market doesn't care as much about where a stock has come from as it does about where it's going. Moreover, 3M is a leading industrial company generating significant earnings and cash flow, and its dividend currently sports a 5.8% yield. There's a lot to like about the stock, but is it enough to offset the negatives? 

There are two sets of interconnected talking points around 3M right now. The first -- its potential legal liabilities from manufacturing and using per- and polyfluoroalkyl substances (PFAS), and its sale of allegedly faulty combat arms earplugs -- gets most of the mainstream media attention. However, the second -- the company's continual operational underperformance -- is arguably a more worrying factor. 

The two are intrinsically linked. Unfavorable outcomes on the legal front could lead to significant calls on 3M's cash -- funds that could otherwise be used to restructure and enhance the business through acquisitions, research and development, etc. In addition, costly legal liabilities could weaken 3M's ability to support its much-admired dividend, impacting the investment thesis for many people who hold the stock for its yield.

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Source Fool.com