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Is 3M Co (NYSE: MMM) Still A Reliable Dividend Growth Stock?

Many of the blue chip companies trading on the main US exchanges are significantly overvalued, and it is becoming extremely difficult to find companies with strong fundamentals such as 3M Co (NYSE: MMM). 3M is categorized as a dividend king having paid a stable dividend for over 60 years, which has made the company a favorite among dividend growth investors in the past.

However, investor sentiment towards the stock has waned recently as the company’s stock price has receded from all-time highs recorded in January. Despite the weak investor sentiment towards the manufacturing conglomerate, the company’s fundamentals are stronger than ever given that it reported revenue growth of 5.14% in 2017, which is quite high for a mature company.

Review Our 3M Trading Plans Here.

The company also continues to grow its profit margins as was evidenced by its operating margins for 2017, which came in at 24.7%. 3M also continues to invest in research and development and this allows the company to keep releasing new products into the market that fill identified gaps and generate over 30% of the company’s total sales.

Our combined analysis of the company indicates that the fourth quarter is typically the company’s weakest quarter, which explains the lower revenues recorded in Q4 2017 as compared to the previous quarters. The company’s growth prospects remain positive as we expect the company’s earnings to improve significantly in the current quarter as outlined in the charts below.

The company’s quarterly growth rate had dropped in Q3 2017, but recorded an improvement in Q4 and is expected to improve even further during the current quarter. 3M’s annual growth rate dipped slightly in Q4 2017 and is expected to dip much further throughout this year before recovering next year.

3M has posted solid financial returns over the past decade and despite trading at an expensive P/E of 25.86, the company has significant growth potential. 3M has a distinct competitive edge over its peers due to the fact that the company invests heavily in R&D having invested $1.84 billion in R&D last year.

Based on the technical data and associated charts at the time this article was written, Stock Traders Daily has provided detailed trading plans, with integrated risk controls, to its clients. These plans will change in real time as prices move. To receive an update or to review the detailed trading plans associated with this data please review our Real Time Trading Report for MMM.

Technical Summary

Term →Near Mid Long
Rating Neutral Weak Neutral
P1 209.84 204.36 220.39
P2 217.26 222.45 243.68
P3 220.38 239.23 266.34
Triggers may have already come
Support and Resistance Plot Chart for MMM

Long Term Trading Plans for MMM

April 6, 2018, 8:46 am ET

The technical Summary and associated Trading Plans for MMM listed below will help you make important timing decisions for your trades. This data is based on our proprietary analysis for MMM. In addition we offer Market Timing Models and Stock Filters in the links above which may increase the proficiency of the decisions you make.

MMM - (Long) Support Plan

There is no current Support Plan to trigger a buy of this stock at this time. This usually means that there are no clear support levels at this time, so buying the stock as it falls could be considered catching a falling knife. Buy signals only exist if resistance breask higher.
This often is a signal that the stock you are watching is weak. Waiting for a turn higher may be more intelligent than trying to catch a falling knife. In any case, new support levels are usually revised to the database at the beginning of the next trading session.

MMM - (Short) Resistance Plan

Short under 220.39, target n/a, stop loss @ 220.65.
The technical summary data is suggesting a short of MMM as it gets near 220.39, but the downside target is not available from the current data. This tells us to hold that position if it is triggered until a new downside target has been established (updates occur at the beginning of every trading session) or until the position has been stopped. The summary data tells us to have a stop loss in place at 220.65. 220.39 is the first level of resistance above 218.67, and by rule, any test of resistance is a short signal. In this case, if resistance 220.39 is being tested, so a short signal would exist.


MMM Long Term Analysis


MMM EPS Analysis

MMM Revenue chart

MMM Growth rate - Quarterly

MMM Growth rate - Yearly

Blue = Current Price
Red= Resistance
Green = Support

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