Near a 52-Week Low, Is This 5.2%-Yielding Dividend King a Buy?
3M (NYSE: MMM) is a huge conglomerate with over 60,000 industrial and consumer products, including such well-known names as Scotch tape, Post-it notes, and more. The company's diverse offerings have helped support steady dividend growth over time. In fact, 3M is one of the longest-tenured Dividend Kings. After last week's dividend raise, it is on track to have paid and raised its dividend for an impressive 65 straight years.
Yet 3M stock has been under intense pressure lately due to litigation involving its faulty Combat Arms earplugs and use of per- and polyfluoroalkyl substances (PFAS). And to make matters worse, the company has posted earnings miss after earnings miss, stagnating to declining growth, and has a bloated cost structure that has left it vulnerable to inflation and supply chain challenges.
3M's fourth-quarter 2022 earnings miss added more pressure to the stock, knocking it back down near a 10-year low. Let's weigh the good and the bad to see if 3M is worth buying or if the stock sell-off simply isn't enough to justify the risks.
Source Fool.com
