This Ultra-High-Yield Dividend Stock Is About to Lose Its Crown
3M (NYSE: MMM) has been a dividend stalwart. The industrial conglomerate has paid dividends to its shareholders for over a century without interruption and has raised its payout annually for more than 60 straight years. The company's dividend-growth streak currently qualifies it as a Dividend King, a term for companies that have increased their payouts for at least 50 years in a row.
However, 3M is about to make a big change to its dividend policy, which will see it give up its crown. The company plans to reset its dividend now that it has completed the spin-off of its former healthcare business, Solventum. As a result, the company's dividend, which currently yields 6.3%, is about to head a lot lower.
3M recently reported its first-quarter results, which was its first report since spinning off Solventum. Included in that report was an update to its 2024 guidance to reflect the expected earnings of the go-forward business. The forecast puts its adjusted earnings between $6.80 and $7.30 per share. That's down from $9.24 per share in 2023, due largely to the loss of Solventum's earnings.
Source Fool.com
