Monday, September 14, 2015

Recent Buy - 3M Company (MMM)

Hi Everyone,

My wife and I continue to be blessed with the way this year has shaped up.  Personally, these buy posts make me hungrier than ever to keep saving, keep making money and keep investing.  The income that we are starting to make every month is starting to put a significant dent into our expenses.  If you jump over to our Portfolio page, you can see that we almost have an entire month of expenses taken care of if we choose to quit our day jobs.  Eleven more months to go and we are home free!!

The previous month was crazy busy but now that summer is coming to an end so are our social gatherings on every weekend.  As said in my last post, we have still been saving a good portion of our income which has afforded us to make another purchase into our growing portfolio

In my last post, I asked you readers what company I should buy but, there were no comments and I just could not wait any longer.  

With this purchase, my wife and I have put a total of around $36,000 to work since the beginning of 2015.  My goal of investing roughly $40,000 is coming ever so close! We are about three quarters of the way through the year and our total is 90% of the way to our goal.  So now for the numbers... 

We purchased 14 shares of 3M (MMM) at $141.50.  This purchase adds $57.40 of annual dividends to our account.

We now own 14 shares of MMM as this was a new addition.  We are now invested in 38 individual companies.  

MMM Chart:


Statistics:

P/E:  18.40
Yield:  2.90%
Market Cap:  90B
Dividend Growth Rate (3yr):  18%
Dividend Growth:  56 years
Payout Ratio: 53%

As you can see from the stats above, MMM has a killer dividend streak going on and the last few years have seen some incredible dividend growth.  I have been trying to get a piece of this company for years it seems like but there were either other companies that looked better at the time or MMM just looked too overpriced.  With a payout ratio of only 53% there is potential for the dividend to continue growing for years to come.  2008 would have been a great time to pick up this company but just looking at the chart you can see that this company does not go on sale often.  Currently, MMM has pulled back roughly 18% from its high just a few short months ago so I thought this was a great time to finally initiate a position.

The yield is a bit lower than my overall portfolio but this is more of a play on the dividend growth into the future.  I can only hope MMM is buying back a lot of shares at these discounted prices which will give them more fuel to increase the dividend at great rates into the future.  Hopefully the stock price stays low so my dividends buy more shares of this company!

You can check out all the other purchases we have made for the year on my Stock Purchases and Sells page.

So there you have it, the next building block on the path to the American Dividend Dream!  What do you think, good purchase, bad purchase?  What are you looking to buy next?

ADD

No comments:

Post a Comment