MMM Dividend Yield Pushes Past 6%

In buying and selling on Friday, shares of MMM have been yielding above the 6% mark based mostly on its quarterly dividend (annualized to $6), with the inventory altering palms as little as $99.58 on the day. Dividends are notably essential for buyers to think about, as a result of traditionally talking dividends have offered a substantial share of the inventory market’s complete return. As an instance, suppose for instance you bought shares of the S&P 500 ETF again on 12/31/1999 — you’ll have paid $146.88 per share. Quick ahead to 12/31/2012 and every share was value $142.41 on that date, a lower of $4.67/share over all these years. However now contemplate that you simply collected a whopping $25.98 per share in dividends over the identical interval, for a constructive complete return of 23.36%. Even with dividends reinvested, that solely quantities to a mean annual complete return of about 1.6%; so by comparability gathering a yield above 6% would seem significantly engaging if that yield is sustainable. MMM is an S&P 500 firm, giving it particular standing as one of many large-cap firms making up the S&P 500 Index.

Begin slideshow: 10 Shares The place Yields Bought Extra Juicy »

Normally, dividend quantities will not be all the time predictable and have a tendency to comply with the ups and downs of profitability at every firm. Within the case of MMM, trying on the historical past chart for MMM beneath will help in judging whether or not the latest dividend is more likely to proceed, and in flip whether or not it’s a affordable expectation to anticipate a 6% annual yield.

Free Report: Prime 8%+ Dividends (paid month-to-month)

MMM has been rising its dividend for greater than 20 years consecutively. For extra dividend progress shares view our Dividend Aristocrats Record on Dividend Channel.