This Is My Favorite Industrial Stock Right Now

There's a saying on Wall Street that you should buy when others are fearful, which is much easier said than done. However, if you focus on dividends as I do, it can help overcome the hesitancy that is natural during difficult times.

Today, industrial giant 3M (NYSE: MMM), which currently has a historically high yield, looks very attractive, but only if you can see beyond the near-term negatives it faces. Here are three reasons why I own the stock despite some big, ugly warts.

Industrial stocks like 3M are inherently cyclical, with demand for their products, often sold to other companies, rising and falling along with economic activity. Right now, investors fear a broad recession as central banks around the world increase interest rates to combat inflation. That's a very reasonable worry, but if history is any guide, recessions, even very bad ones, eventually come to an end. Then the next expansion starts and expansions tend to last longer than contractions.

Source Fool.com