My thoughts on pro's and con's of MMM:
Pro's:
60 years of dividend growth
Trusted brand name, broad product portfolio
Midwestern HQ & culture, less subject to coastal follies and over-reach (I imagine rooms full of guys in short-sleeve shirts with pocket protectors, innovating the daylights out of adhesives and what-not, bringing "hot dish" from home for lunch, etc...)
Con's:
Still not cheap at 21 PE
Dividend coverage ratio will get worse with decline in earnings, may reduce div growth
It's at the limit of cyclicality for my personal (retirement portfolio) criteria. I absolutely avoid industrials, autos, airlines, housing, shippers, etc., but a quasi "industrial" with 60 years of div growth deserves a close look. If they drop a stinker like this when others of their ilk are not, then I'm staying away and just watching. |
