3M (MMM) announced today that the company is increasing their quarterly dividend by 5% to $.55 per share.
Today’s dividend announcement marks the 53rd consecutive year that 3M has increased their dividend payment. Following the dividend increase, 3M stock will offer a current dividend yield of 2.5% based on today’s closing price.
3M also announced a $7 billion share repurchase program. That would represent nearly 11% of 3M’s total shares outstanding based on the stock’s current market cap of approximately $64 billion.
George W. Buckley, 3M chairman, president and CEO commented, “Today’s announcement reflects the strength of our business model and our confidence in the future. Our strong balance sheet and outstanding free cash flow allow us to fund growth investments and continue our legacy of returning significant cash to shareholders.”
3M has a strong dividend history having paid out dividends to their shareholders for the past 94 years. Just in the past five years, 3M has returned over $15 billion to investors via dividends and share repurchases.
3M is a dividend aristocrat, but it offers investors growth as well. Wall Street analysts are expecting revenues to grow more than 10% in 2011 making 3M a 100-year old growth stock.
The increased dividend from 3M is payable on March 12, 2011 to shareholders of record as of February 18, 2011.
Disclosure I am long MMM shares.
3m always performs well.
ReplyDelete