It's been a while, but 3M (NYSE: MMM) finally and formally cut its dividend recently, approving a dividend of $0.70 for the second quarter, down from the previous quarterly payment of $1.51. Annualizing the dividend means $2.80 per share for the full year, implying a dividend yield of 2.8% using Wednesday's closing price.

It was no secret that 3M would cut its dividend since management had told investors it intended to pay 40% of its adjusted free cash flow (FCF) in dividends this year. As such, investors already know the dividend-to-FCF ratio: 40%.

As for the dividend-to-net income ratio, management expects earnings per share of $6.80 to $7.30 (excluding the now spun-off business Solventum), implying a dividend-to-net income payout ratio of 40% at the midpoint of guidance.

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Source Fool.com