Dividend Aristocrat Overview: 3M

About 3M

3M was formed in 1902 as the Minnesota Mining and Manufacturing Company to mine what was hoped to be a mineral deposit for wheel-grinding abrasives.  The mine turned up empty of valuable minerals but the company persevered, moving headquarters twice and eventually settling in St. Paul, MN.  Over time, the company has developed technologies and applied them to products for industrial and household use across five business segments: Consumer, Electronics and Energy, Health Care, Industrial, and Safety and Graphics.  Popular brands include Post-It®, Scotch®, Scotch-BriteTM, ScotchgardTM, and NexcareTM.

The Minnesota Mining and Manufacturing Company officially changed its name to 3M in 2002.

3M is not only a member of the S&P 500, it is one of 30 companies that are part of the Dow Jones Industrial Average.

3M’s Dividend and Stock Split History

3M initiated dividends in 1916 and has increased them annually since 1960.  The company usually announces annual dividend increases either in mid-December or early February with the stock going ex-dividend in mid-February.

3M has compounded its payout at an average rate of 14.8% over the last 5 years and 9.4% over the last 10 years.

3M has split 10 times since its incorporation as Minnesota Mining and Manufacturing Company in 1902.  Seven of these splits came after 3M was listed for trading on the NYSE in 1946: 2 for 1 splits in May 1956, May 1972, May 1987, March 1994, and September 2003, a 3 for 1 split in May 1960, and a 4 for 1 split in January 1951.  Prior to 1946, 3M split 2 for 1 in December 1920, December 1922 and November 1945.

3M’s Direct Purchase and Dividend Reinvestment Plans

3M does not offer a direct investment plan but does offer a dividend reinvestment plan, which is administered through Wells Fargo Shareholder Services.  3M pays all purchase fees associated with the dividend reinvestment plan.  The investor is responsible for paying fees when selling shares through the plan.  Once enrolled in the plan, investors can purchase additional shares directly with a very low minimum of $10.

Investors interested in participating in the dividend reinvestment plan must own their shares directly, and not in “book form” through a broker.  Investors that own shares through a broker must direct their broker to transfer the shares to Wells Fargo Shareholder Services for registration through the plan.  If investors own shares in certificate form, those shares must be transferred into the plan.  Specific information on how to do this is available at http://www.shareowneronline.com.

Helpful Links

3M Investor Relations

Current quote and financial summary (finviz.com)