3M Co: A Top Dividend Growth Stock

Shares of 3M Co have outperformed the S&P 500 by 75% over the last month. In fact, in each of the last two years, 3M has beat the S&P 500 index by over 50%. Then there's the income aspect. 3M offers a 2.4% dividend yield. That's better than you'll get with the S&P 500, which yields 1.9%. 3M has also increased its annual dividend payment for 55 consecutive years.

3M is a somewhat overlooked and often misunderstood dividend growth stock. Many investors probably consider 3M a consumer products company, because it's known for such brands as Post-it and Scotch. However, it's actually much more of a technology company.

Its key job is to invent new products. It has a strong research and development department made up of innovators and scientists that create products across several industries, not just consumer goods. The other major industries that 3M operates within includes industrial, safety and graphics, electronics, energy, and healthcare.

3M's balance sheet is fairly strong. It has a debt to equity ratio that's 37%. It also generates high levels of free cash flow, which helps support its share buybacks and dividends. This dividend growth stock is also one of the best ways to gain access to international markets.

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