Why This Dividend Stock May Be a Buy After Selling Off
Shares of 3M (NYSE: MMM) took a hit on Tuesday, sliding about 6% following the company's fourth-quarter report. The maker of diversified industrial, consumer, and healthcare products reported lower-than-expected earnings per share and slower-than-anticipated growth as management said that its consumer-facing products saw demand weaken amid a challenging macroeconomic environment.
While the quarterly update certainly highlighted some reasons to be concerned, the stock's recent beating may be more than pricing in the challenges ahead. Indeed, shares of this strong dividend stock are starting to look quite attractive at this level.
Based on 3M's fourth-quarter update, business performance could prove to be disappointing in the near term. Highlighting the company's stalling growth, organic revenue increased just 0.4% year over year in 3M's fourth quarter. This was below the company's prior view for fourth-quarter top-line growth between 1% and 3%. In a telling insight about the state of the current macroeconomic environment, demand for the company's consumer-facing product lines weakened at an accelerated rate in December compared to the rest of the quarter.
Source Fool.com
