Dividends

Dividends WE 3M declared a dividend of $0.635 per share on November 11,2013, for the current quarter. The announced dividend was equal to what it paid out in the previous quarter, and the company seems to be on track to pay $2.54 per share by the end of the year. The company paid a dividend of $2.36 per share in 2012, which was 7.2% higher than the preceding year, and 18% higher than the dividends paid out in 2008. Dividend Yield 4.0% The company's dividend yield, however, has fallen from 3.5% in 2008 to 3.5% 2.54% in 2012. 3.0% 2.5% 2.0% 2008 2009 2010 2011 2012 Dividend per Share YoY Growth Even though dividends per share dropped almost 50% in 2009, the company has maintained a five-year annual dividend growth rate of between 150% 3.5%-9%over 2008-12. 100% 50% 0% -50% -100% 2008 2009 2010 2011 2012 The company has historically maintained a coverage ratio of between 2-3 t imes. At the same time, it has maintained a dividend payout ratio of between 30-45% of its earnings. Dividend Coverage 3M Cash Position vs. Payout Ratio 1Free Cash Flow (in $ billion) 1 Cash (in $ billion) Dividend Coverage $4.04 $4.08 Payout Ratio $3.91 $3.82 $3.38 3.2x $3.06 45% $3.04 $2.88 $2.22 40% $1.85 2.7x 35% 2.2x 30% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 3M had also reduced its overall debt to equity ratio from 65% to 33% as of the end of 2012. It has a repayment of $1.3 billion due in 2014, followed by a payment in 2016 for Ş1 billion. Its total long-term liabilities have increased marginally from $15.5 billion to $15.8 billion over the five years ending 2012. Debt to Equity 70% 60% 50% 40% 30% 20% 10% 0% 2008 2009 2010 2011 2012 The company has historically paid dividends between 29-31% of its cash flow from operations. With a five year CAGR of 3.2% ending FY2012 the company should be able to maintain its dividends in the near future. SOURCES: BIDNESS Company Data, SEC filings, Bloomberg Professional Services etc. DISCLAIMER: Bidness Etc(TM) and related marks are owned by Bidness Etc. Any other trademarks appearing on this website are the property of their respective owners, and are not used to indicate the origin of goods or services offered or provided by Bidness Etc herein or to suggest approval for or affiliation with Bidness Etc.