It is a new month of August and one of my favorite things to record on this website are the fresh new acquisitions into my portfolio. The reason why these acquisitions are so powerful to me is because it is literally the fuel to my engine of financial independence. The fuel in the form of capital where an investment creates passive income for the rest of my life.
You see, if I were to live paycheck to paycheck and not try to save any money month after month, I would probably end up spending it all. I would simply be just be another hamster spinning on a wheel. Trying is the key to saving and if you don’t try or try hard enough you will not be successful. I don’t care if you make $6,000 or $50,000 per month from your job, if you spend it all, you did’t make squat! This is why savings part is so crucial to me because I would not have the opportunity in buying these great businesses that will return growing value to me over time.
Speaking of value, for this recent acquisition I decided to go with none other than 3M Company (MMM). I’ve had this dividend aristocrat on my watch list for a while now, but never having low enough P/E to take a bite. Though, with recent home renovations and all that it intakes, I truly came to realization how powerfully diversified this company is. It is the ultimate octopus in diversification, having presence through products in many industries. Currently, according to their company products page, they have 17,250 products. Their 2014 and 2013 dividend raises were at 34.6% and 7.6% respectively.
3M was founded in 1929, and is based in St. Paul, MN. The company provides enhanced product functionality in electronics, health care, industrial, consumer, office, telecommunications, safety, security and other markets via coatings, sealants, adhesives, and other chemical additives. A conglomerate that produces products for many industries for both personal and business use and their manufacturing, research, and sales offices are worldwide.
- Dividend Yield: 2.7%
- 3 Year Dividend Growth Rate: 15.8%
- 7 Year Dividend Growth Rate: 9.85%
- Payout Ratio: 52.2%
- P/E: 20.6
- Consecutive Years of Dividend Raises: 56
I purchased 6 shares of MMM for the price of $151.75 adding $24.60 to my annual dividend income.
This is the 8th time I am initiating a stock acquisition this year. This transaction is my initial purchase of MMM into the portfolio. Furthermore, the acquisition of MMM makes it the 32nd company I am invested in. Currently, MMM ownership stake represents to be around 1.4% of my current portfolio value.
The 12-month dividend income increased to $2,410.
Thank you for reading & have a great day!