Money and Finance
The economy is on stable ground but is far from growing by leaps and bounds. Even worse the volatility in the stock markets are playing with investors minds. Back in August and September the stock markets declined significantly, but shot up 10% in October alone to continue higher. Recently the markets have been seeing red with a potential increase in interest rates on the horizon. The uncertainty of the Federal Reserves' actions are whipsawing the markets which makes me want to add to some of the highest quality companies out there.
I consider 3M Company (NYSE:MMM) to be one of those high quality companies and the 57 year streak of growing dividends seems to back that up. The breadth and diversity of their products smoothes out operations. When one segment suffers the others tend to pick up the slack. That can lead to some amazing long term results for investors. Every $1 invested in 3M Company 30 years ago is worth $36.28 today. That's a 12.7% annualized return.
While I'm glad to call myself an owner of this excellent company that doesn't mean I'm willing to purchase shares at any price. The truest fact with investing is that valuation matters. I wanted to reexamine the future return potential if you purchased shares of 3M Company at current levels to gauge whether it could make for a solid investment.
Continue reading the 3M Company stock analysis on Seeking Alpha.
To see more of my stock analyses check out the Stock Analysis page.
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Money and Finance
3M Is A Wonderful Company But Not A Buy Here
The economy is on stable ground but is far from growing by leaps and bounds. Even worse the volatility in the stock markets are playing with investors minds. Back in August and September the stock markets declined significantly, but shot up 10% in October alone to continue higher. Recently the markets have been seeing red with a potential increase in interest rates on the horizon. The uncertainty of the Federal Reserves' actions are whipsawing the markets which makes me want to add to some of the highest quality companies out there.
I consider 3M Company (NYSE:MMM) to be one of those high quality companies and the 57 year streak of growing dividends seems to back that up. The breadth and diversity of their products smoothes out operations. When one segment suffers the others tend to pick up the slack. That can lead to some amazing long term results for investors. Every $1 invested in 3M Company 30 years ago is worth $36.28 today. That's a 12.7% annualized return.
While I'm glad to call myself an owner of this excellent company that doesn't mean I'm willing to purchase shares at any price. The truest fact with investing is that valuation matters. I wanted to reexamine the future return potential if you purchased shares of 3M Company at current levels to gauge whether it could make for a solid investment.
Continue reading the 3M Company stock analysis on Seeking Alpha.
To see more of my stock analyses check out the Stock Analysis page.
Image source
- 6 Months Later, Still Not The Time For Mccormick
Consumer staples companies typically make for excellent dividend growth candidates. In general, they have rather inelastic demand that doesn't see operations fluctuate with the health of the economy, at least not to the degree that other sectors...
- After The Run Up There's Still Double Digit Return Potential For Johnson & Johnson
When you think of some of the greatest companies in the world one name that is sure to come up is Johnson & Johnson (NYSE:JNJ). What's not to like about a company that has earned investors 8.0% annualized total returns over the last decade, 10.8%...
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Consumer staple companies make for excellent defensive investments and dividend growth candidates due to the rather inelastic demand for their products. For those companies that have established brands and market share they can typically pass along input...
- Colgate-palmolive Co.: Excellent Company But How's The Valuation?
When volatility in the markets increases that leads many investors to look for defensive investments that will hold up during a market downturn. Consumer staples are some of the best options when it comes to holding up in a declining market as well as...
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