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