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Strategies & Market Trends : Dividend investing for retirement
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To: Investor2 who wrote (34095)8/15/2022 10:29:33 AM
From: goldendad3 Recommendations

Recommended By
Kip S
Secret Recipe
Thehammer

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"Any opinions on the wisdom of tendering my 3M shares?"

I'm going to pass. NEOG currently trades at 35x with no dividend so it's a non-starter for me. After all this is "dividend investing for retirement."

MMM is offering a 7% discount which makes it worth a look for some people. The whole deal is looking for 15MM 3M shares to be tendered (out of about 500MM).

If everyone wants it you'd only get 3% of your shares exchanged so for every 100 shares you'd tender 3 shares and get about 7.3 shares so you'd get 22 shares of NEOG for your 3 shares of MMM and be left with 97 shares (more or less).

If few want it -- let's just say only 15MM shares are tendered -- all your shares would be tendered and you'd be left holding a company trading at 35x PE and no dividend.

If no one wants it -- no one is willing to tender shares -- I think MMM says it would just distribute it pro rata to all shareholders. I'm sure that won't happen because of the 7% discount but if it did that's fine I'd take it and sell it right away since it's not something I'd want to own.

That's my casual reading/take on it.
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