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3M (MMM) Announces 0.7% Hike in Quarterly Dividend Rate
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3M Company (MMM - Free Report) recently announced a 0.7% hike in the quarterly dividend rate. This marks its 64th consecutive year of dividend rate increase.
We believe that such shareholder-friendly policies of the company reflect a strong cash position.
Inside the Headlines
As revealed, 3M’s board of directors approved a hike of 1 cent per share in the quarterly dividend rate. It now stands at $1.49 per share, higher than the previous rate of $1.48. On an annualized basis, the dividend rate has been raised from $5.92 to $5.96.
3M will pay out the revised amount on Mar 12, 2022, to shareholders on record as of Feb 18.
Sound Shareholder-Friendly Policies
3M believes in rewarding shareholders handsomely through dividend payments. The company’s cash dividend payout increased from $5.76 per share in 2019 to $5.92 in 2021. In February 2021, it had raised the quarterly dividend rate by 1%.
The company paid out dividends worth $3.4 billion to its shareholders in 2021, up 0.9% on a year-over-year basis. On a quarterly basis, MMM paid dividend of $1.48 per share in 2021. The last payment was made on Dec 12, 2021.
In addition to dividends, 3M rewarded shareholders through share buybacks worth $2.2 billion in 2021. Shares worth $368 million were repurchased in 2020.
It’s worth noting that the company’s reward to shareholders was about $14 billion in the form of dividend payouts and share buybacks in the last three years.
Zacks Rank, Price Performance and Estimate Revisions
The company is poised to benefit from healthy business in abrasives, advanced materials, electrical, food safety, consumer health and other markets in the quarters ahead. Its solid product portfolio, marketing activities and shareholder-friendly policies are tailwinds. However, low demand for disposable respirators, supply-chain challenges, logistic issues and cost inflation might weigh on MMM.
In the past 30 days, the Zacks Consensus Estimate for earnings has decreased 0.5% to $10.45 for 2022 but increased 0.2% to $11.07 for 2023.
Image Source: Zacks Investment Research
In the past three months, the stock has lost 11.7% compared with the industry’s decline of 9.7%.
Dividend Hikes by Three Industry Players
Below we have discussed three other companies from the same industry that reward their shareholders with hiked quarterly dividend rates.
Crane Co. (CR - Free Report) hiked its quarterly dividend rate by 9% in January 2022. Dividends totaling $100.6 million were paid out in 2021.
Crane’s earnings estimates improved 1.5% for 2022 in the past 30 days. CR’ shares have lost 4.5% in the past three months.
Carlisle Companies Incorporated (CSL - Free Report) hiked its quarterly dividend rate by 3% in August 2021. Dividends totaling $84.2 million were paid out in the first nine months of 2021.
Carlisle’s earnings estimates remained stable for 2021 (results are awaited) in the past 30 days. CSL’s shares have lost 7.3% in the past three months.
Honeywell International Inc. (HON - Free Report) hiked its quarterly dividend rate by 5.4% in October 2021. Dividends totaling $2,626 million were paid out in 2021.
Honeywell’s earnings estimates decreased 3% for 2022 in the past 30 days. HON’s shares have lost 14.6% in the past three months.
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3M (MMM) Announces 0.7% Hike in Quarterly Dividend Rate
3M Company (MMM - Free Report) recently announced a 0.7% hike in the quarterly dividend rate. This marks its 64th consecutive year of dividend rate increase.
We believe that such shareholder-friendly policies of the company reflect a strong cash position.
Inside the Headlines
As revealed, 3M’s board of directors approved a hike of 1 cent per share in the quarterly dividend rate. It now stands at $1.49 per share, higher than the previous rate of $1.48. On an annualized basis, the dividend rate has been raised from $5.92 to $5.96.
3M will pay out the revised amount on Mar 12, 2022, to shareholders on record as of Feb 18.
Sound Shareholder-Friendly Policies
3M believes in rewarding shareholders handsomely through dividend payments. The company’s cash dividend payout increased from $5.76 per share in 2019 to $5.92 in 2021. In February 2021, it had raised the quarterly dividend rate by 1%.
The company paid out dividends worth $3.4 billion to its shareholders in 2021, up 0.9% on a year-over-year basis. On a quarterly basis, MMM paid dividend of $1.48 per share in 2021. The last payment was made on Dec 12, 2021.
In addition to dividends, 3M rewarded shareholders through share buybacks worth $2.2 billion in 2021. Shares worth $368 million were repurchased in 2020.
It’s worth noting that the company’s reward to shareholders was about $14 billion in the form of dividend payouts and share buybacks in the last three years.
Zacks Rank, Price Performance and Estimate Revisions
3M, with approximately $93.3 billion market capitalization, currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company is poised to benefit from healthy business in abrasives, advanced materials, electrical, food safety, consumer health and other markets in the quarters ahead. Its solid product portfolio, marketing activities and shareholder-friendly policies are tailwinds. However, low demand for disposable respirators, supply-chain challenges, logistic issues and cost inflation might weigh on MMM.
In the past 30 days, the Zacks Consensus Estimate for earnings has decreased 0.5% to $10.45 for 2022 but increased 0.2% to $11.07 for 2023.
In the past three months, the stock has lost 11.7% compared with the industry’s decline of 9.7%.
Dividend Hikes by Three Industry Players
Below we have discussed three other companies from the same industry that reward their shareholders with hiked quarterly dividend rates.
Crane Co. (CR - Free Report) hiked its quarterly dividend rate by 9% in January 2022. Dividends totaling $100.6 million were paid out in 2021.
Crane’s earnings estimates improved 1.5% for 2022 in the past 30 days. CR’ shares have lost 4.5% in the past three months.
Carlisle Companies Incorporated (CSL - Free Report) hiked its quarterly dividend rate by 3% in August 2021. Dividends totaling $84.2 million were paid out in the first nine months of 2021.
Carlisle’s earnings estimates remained stable for 2021 (results are awaited) in the past 30 days. CSL’s shares have lost 7.3% in the past three months.
Honeywell International Inc. (HON - Free Report) hiked its quarterly dividend rate by 5.4% in October 2021. Dividends totaling $2,626 million were paid out in 2021.
Honeywell’s earnings estimates decreased 3% for 2022 in the past 30 days. HON’s shares have lost 14.6% in the past three months.