3M’s Dividend Risk Is Rising, So Buy These 2 Higher-Yielding Alternatives

3M’s Dividend Risk Is Rising, So Buy These 2 Higher-Yielding Alternatives

Posted On March 1, 2023 7:42 am

44% of US stocks suffer permanent “catastrophic” 70+% declines, and not even dividend aristocrats are 100% safe.

The Dividend Kings use a 3,000-point safety and quality model looking at over 1,000 metrics to warn investors against potential value traps.

3M’s earnings and guidance were terrible, with a dividend payout ratio close to 100% in 2023. We just downgraded our safety score to 63% and the quality score to 91%.

3M remains a high-quality though speculative company. It’s trading at the lowest price in 10 years, the lowest PE in 15 years, and the highest yield in 27 years.

While 3M has 12% to 13% long-term return potential and could potentially soar to almost 80% in 3 years, here are two superior higher-yielding blue-chip options firing on all cylinders.

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About author

Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I'm a proud co-founder of Wide Moat Research, Dividend Kings, and the Intelligent Dividend Investor. My work can be found on Seeking Alpha, Dividend Kings, iREIT, and the Intelligent Dividend Investor. My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams and enrich their lives. With 24 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams and achieving long-term financial goals.

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