MMM - 3M Company: Still A Good Investment Despite Dividend Cut

2024-06-03 05:33:23 ET

Summary

• 3M Company reported solid first quarter results with adjusted EPS growing in the double digits again.
• The company spun off its healthcare business into a new company called Solventum.
• 3M Company cut its dividend in half, but the stock is still undervalued and seems well-supported from a technical point of view.
• With major lawsuits almost resolved, we can be optimistic for 3M Company to return to previous growth and efficiency levels.

One of the biggest disappointments in my portfolio is 3M Company ( MMM ) and the position is still down 30%. Of course, this is not including dividends I collected in the last few years, and we also must take into account the position in Solventum Corporation ( SOLV ) I now have (we will get to this). And while I already thought I made a great investment as I bought the stock clearly below its all-time high, the stock is now trading 55% below its previous all-time high (and a few quarters ago, the stock declined as much as 67%)....

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