10 Best Diversified Dividend Stocks To Buy Now

2. 3M Company (NYSE:MMM)

Number of Hedge Fund Holders: 82

3M Company (NYSE:MMM) is a Minnesota-based multinational conglomerate that operates in a wide range of industries. While the company is currently presenting a more positive outlook, it faced considerable challenges last year, including spinning off its healthcare division and cutting its dividend by 50%. In addition, it has been dealing with ongoing legal and regulatory pressures for several years. However, 3M is actively working to manage these challenges with a strategic plan to handle related costs. This effort is evident in the stock’s performance, which has risen over 65% over the past 12 months.

In its Q4 2024 earnings, 3M Company (NYSE:MMM) reported revenue of over $6 billion, which beat analysts’ estimates by $157 million. Recently, the company has been focusing its efforts on core business areas. Innovation continues to be a key priority, with substantial investments in proprietary technologies and patents strengthening its competitive position. In addition, it has worked on improving operational efficiency, particularly in its supply chain, leading to a 70% improvement in supplier on-time delivery. The company’s ability to navigate regulatory requirements and manage ongoing litigation has also been crucial for maintaining financial stability and building investor confidence.

3M Company (NYSE:MMM)’s cash position remained stable in FY24. The company reported an operating cash flow of $1.8 billion and its free cash flow came in at $4.9 billion. During the year, it also returned $3.8 billion to shareholders through dividends and share repurchases, which makes MMM one of the best dividend stocks on our list. The company offers a quarterly dividend of $0.70 per share and has a dividend yield of 1.88%, as of January 22.

The number of hedge funds tracked by Insider Monkey owning stakes in 3M Company (NYSE:MMM) jumped to 82 in Q3 2024, from 66 in the previous quarter. These stakes have a total value of roughly $3.6 billion. With over 2.7 million shares, Citadel Investment Group was the company’s largest stakeholder in Q3.