Dividend Stocks to Sell: MMM Stock
As for 3M (MMM), I actually love this company. It’s a great conglomerate that operates in many sectors, performs well, has been around forever, and is seeing gains in good places. While it struggles in emerging markets, it came in with a 4.5% organic growth in the EMEA region.
Operating income recently came in with a 9.4% increase. However, MMM stock’s Latin American market is expected to see an 8% decline in revenue. I’m objecting to 2.6% yield strictly on the basis of valuation. It trades on 17 times earnings when EPS is slated to grow 11.5%.
So, whether you’re looking for yield or protection, avoid these stocks. They may be dividend stocks, but you can easily find better picks for your portfolio.
As of this writing, Lawrence Meyers did not hold a position in any of the aforementioned securities. He is president of PDL Broker, Inc., which brokers financing, strategic investments and distressed asset purchases between private equity firms and businesses. He also has written two books and blogs about public policy, journalistic integrity, popular culture, and world affairs. Contact him at firstname.lastname@example.org and follow his tweets @ichabodscranium.