Founded in 1902, 3M (MMM) was intended to be a mining company that would find minerals used in sand paper and grinding wheels. While the company wasn’t successful in this initial adventure, the founders’ turned to working with different materials to produce innovative new products for customers in order to grow their business.

That spirit of innovation lives on as 3M now has a portfolio of more than 60,000 products that are used in homes, offices, hospitals, schools and businesses around the world. 3M employees more than 90,000 people and sells its products in more 200 countries.

3M is also a member of the Dividend Aristocrats. Dividend Aristocrats are those that have raised dividends every year for at least 25 years. There only 53 such companies in the U.S.

3M has actually raised its dividend for 60 consecutive years, making the company a Dividend King. 

Click here to download my Dividend Kings Excel Spreadsheet now. Keep reading this article to learn more.

There are just seven companies that have at least as long of a growth streak as 3M.

This article will examine 3M’s business model, growth prospects, recession performance and valuation to see if the stock is worth purchasing right now.

Business Overview

3M is a diversified industrial company.  There are five separate business within the company. The Industrial division, which accounted for approximately a third of 2017 revenues and 26% of operating income, has a broad range of products to offer customers. These include appliances, electronics, paper and packaging, tapes, abrasives and adhesives.

The Safety & Graphics division produced almost 19% of revenues and 20% of income. This division produces personal protective gear such as hearing and eyewear protection as well as security products that can monitor rescue workers in dangerous environments.

The Healthcare division, 19% of revenues and 23% of income, supplies surgical and dental items, drug delivery systems and products that help to prevent disease to its customers around the world.

The Electronic & Energy segment of the company provides products that are focused on renewable sources of energy. Some of the product offerings include installation tapes, fibers and circuits. This division produced 16% of revenues and roughly 17% of operating income.

The Consumer division is the smallest of the five components of 3M. This division contributed 15% of revenues and 13% of income. Products in this category include office supplies, home improvement products, protective materials and stationary.