3M’s dividend and new share repurchase program
On November 13, 3M announced the key dates for the regular quarterly dividend. To be eligible for the dividend, investors should hold 3M stock as of November 23 in the company’s record. The dividend is expected to be paid on December 12. 3M has declared a dividend of $1.36 per share for the fourth quarter. 3M has been paying a quarterly dividend for more than 100 years.
3M has also approved a new share repurchase program for $10 billion. The new program replaces the current repurchase program. There’s no time limit set to utilize the amount on share repurchases. The press release suggests that at the end of September 30, 3M’s outstanding common shares stood at 582.28 million shares.
Mike Roman, 3M’s CEO, said, “The strength of 3M’s business model – which includes strong cash generation – enables us to consistently deploy capital in a way that creates the greatest value for our customers and shareholders. Our first priority remains investing in our business, and we will also continue to return significant cash to our shareholders.”
Last week, 3M stock had a positive week. The stock gained 3.9% and closed at $209.00 for the week ending November 16. The gains in the stock price resulted in the trend reversal of 3M’s 100-day moving average price. Currently, 3M is trading 2.5% above the 100-day moving average price of $203.83.
On a year-to-date basis, 3M stock has fallen 11.2%. General Electric (GE) and Stanley Black & Decker (SWK) have fallen 54.4% and 23.3%, respectively, while Honeywell (HON) has gained ~1.1%. 3M’s 14-day relative strength index of 63 indicates that the stock isn’t overbought or oversold.
Investors could hold 3M indirectly by investing in the SPDR Dow Jones Industrial Average ETF (DIA). DIA invested ~5.5% of its portfolio in 3M on November 16.