What 3M actually does
3M, founded in 1902, makes thousands of products: Post-it notes, Scotch tape, Command hooks, but also abrasives, adhesives, films, electronics materials and safety equipment. Much of its revenue comes from industrial customers rather than from the consumer products people know.
How the business makes money
It sells specialised materials and products around the world, and relies on research to create new ones. In 2024 it spun off its health care business as Solventum, leaving a smaller, more focused company.
The dividend story
For decades 3M was a Dividend Aristocrat and King, with more than 60 years of increases. In 2024 it reset its dividend to a lower level after the Solventum spin-off and lost that status. The company also faces large legal settlements related to PFAS “forever chemicals” and earplugs.
What to keep an eye on
- Legal costs. PFAS and other claims.
- Restructuring. Execution after the split.
- Industrial demand. Sales follow factory activity.
- Dividend growth. The new payout is lower and growth is slower.
Quick take
3M is a cautionary tale: even a long dividend record can end when the business is restructured.