Acquisition MMM

3M Company LogoIt 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!

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8 Comments

  1. DivGuy on August 11, 2015 at 10:15

    MMM looks very appealing to me as well. I’m still not in a buy mood, but working on my portfolios for my Dividend Stocks Rock website. Surely one to add in!

    Cheers,

    Mike

    • DividendVet on August 11, 2015 at 18:25

      MMM has taken a nice dip here over the last few months, if it keeps on going like that some more I wouldn’t mind to double down.

      Cheers!

  2. FerdiS on August 11, 2015 at 10:16

    Nice buy — I like your motivation for buying shares: not doing so would cause you to spend all your money! More people should think that way…

    Take care
    FerdiS

    • DividendVet on August 11, 2015 at 18:34

      Thanks. There is plenty of motivation for me to achieve financial independence, rather than working with no means to an end. Other people like to buy fancy things with their money, I like to buy fancy companies that pay me growing dividend. It all encompasses buying assets rather than liabilities. Simple as that.

      Thanks for stopping by.

  3. Dividend Clockwork on August 16, 2015 at 19:10

    DV,

    Congrats on your recent purchase of MMM. I have had this company in my crosshairs for quite some time and I am seriously considering initiating a position. 56 years of consecutive dividend raises is truly remarkable. Also, your annual dividend of more than $2,400 is nothing short of inspiring. As of right now I am just starting out so I have a long way to go. Again congrats on the solid purchase.

    DC

    • DividendVet on August 16, 2015 at 20:25

      Thank you. I have to definitely agree that the 56 years of consecutive dividend raises are above and beyond great. Not a lot of companies can accomplish such feats in their business history and 3M has been sustaining it, so I see bright future for this asset.

      Great to hear that you find some value in the work I do on this website. Love hearing it!

      Best of luck to you my friend.

  4. Stalflare on September 10, 2015 at 01:16

    CIao DV,

    Just stumbled on your site, I didn’t find it before! I am a 3M fan myself (it’s one of my biggest holdings) 🙂 Solid company and the recent price drop helped me in averaging down a little which is always a good thing!
    Keep up the good work!

    Ciao ciao

    Stal

    • DividendVet on September 10, 2015 at 12:32

      Glad you have found it, I hope it can serve you some value as I share my real divided growth investing journey to financial independence.

      The 3M company is of extreme quality sort of company, very diversified in their products and rightfully it has been rewarding their shareholders tremendously. Now, I am a small part of those shareholders and I see a bright future.

      Take care.

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