3M Company offers exposure to diversified industrial end markets with improving profitability and solid cash generation at a time when global manufacturing and infrastructure spending are stabilizing. A key spin-off has helped de-risk the portfolio, sharpen management focus, and may allow each entity to be valued more fully by the market.
The stock also offers a reasonable combination of yield and earnings-based valuation with potential for multiple expansion as litigation clouds continue to clear and execution stays on track. For investors seeking a high-quality industrial with a long history of paying dividend and exposure to multiple end markets, these shares can be an appealing holding.
The stock trades at 17.0 times the company’s forward earnings forecast.
3M COMPANY (New York symbol MMM; www.3m.com) started in 1902, when it was called the Minnesota Mining & Manufacturing Company. Today, 3M makes more than 60,000 products, including Post-it notes, Scotch tape, Scotch-Brite cleaning products, Scotchgard protection and Thinsulate insulation.
On April 1, 2024. 3M spun off its Health Care division as Solventum Corp. (New York symbol SOLV). As a result, the company cut your quarterly dividend by 53.6% in June 2024. With the March 2025 payment, it raised the dividend by 4.3%.
Thanks to the benefits of a plan to improve productivity, 3M is again raising your quarterly dividend. Starting with the March 2026 payment, investors now receive $0.78 a share, up 6.8% from $0.73. The new annual rate of $3.12 yields 2.1%.
3M recently agreed to settle lawsuits related to the release of polyfluoroalkyl substances (PFAS) from its operations in several U.S. cities. PFAS chemicals resist heat, oil, stains and water and are used in a number of products. As a result, 3M will pay $10.3 billion over the next 13 years.
The company has also settled claims regarding defects in earplugs it manufactured for the U.S. Army. It will pay a total of $6.0 billion, consisting of $5.0 billion in cash and $1.0 billion in common shares, between 2023 and 2029.
[ofie_ad]
3M’s earnings show a significant improvement and beat the consensus
3M sales in the three months ended December 31, 2025, rose 3.7%, to $6.02 billion from $5.81 billion a year earlier. However, that missed the consensus forecast of $6.03 billion.
The company continued to benefit from rising sales to makers of safety and industrial equipment (up 3.8% excluding currency rates) and transportation and electronic products (up 2.4%). However, sales of consumer products fell 2.2%.
Excluding unusual items, earnings improved 7.4%, to $987 million from $919 million. Due to fewer shares outstanding, per-share earnings gained 8.9%, to $1.83 from $1.68. That beat the $1.80 consensus estimate.
3M shares trade at a reasonable 17.0 times the $8.67 a share it’s forecast to make in 2026.
Recommendation in Wall Street Stock Forecaster: 3M Company is a buy.
