3M Co (MMM): Prospects Look Bright for This Company

Competition

3M’s main industry peers are General Electric Company (NYSE:GE) and United Technologies Corporation (NYSE:UTX). General Electric is one of the best companies working in this industry. It offers a healthy dividend with steady price appreciation. At present, General Electric offers a quarterly dividend of $0.19 per share, yielding 3.07%. General Electric has shown a solid financial position to sustain returns for investors.

Recently, it announced second quarter results with operating earnings of $3.7 billion and net earnings of $3.1 billion, a 3% increase over the past year’s quarter. Importantly, six of its seven industrial business segments have shown strong growth. It is working on a balanced capital allocation plan. It is reducing the overall size of the organization while focusing on its core business. On the whole, General Electric Company (NYSE:GE) is a safe company for dividend investors.

United Technologies Corporation (NYSE:UTX) offers high technology products and services to the aerospace industry and building systems worldwide. Its segments are UTC Aerospace Systems, Otis, Sikorsky, UTC Climate, Pratt & Whitney, and Controls & Security.

United Technologies offers a quarterly dividend of $0.535 per share, yielding 2.09%. Its dividend looks safe as the company has been showing a strong financial position and bright future prospects. Recently, it announced second quarter results with earnings per share growth of 5% to $1.70, and with a full year projection of $6 to $6.15, up 12%-15%. To do this, it is strongly working on restructuring, cost savings, and growing backlogs to increase the lower end of its earnings per share range.

In conclusion

3M is generating increasing sales from developing markets, and it has potential to more fully capture these markets. 3M is a solid company as its businesses are already well known in developing countries, and it has the ability to innovate in multiple sectors. 3M’s solid dividend, strong growth potential and excellent product diversification makes it a great pick.

siraj sarwar has no position in any stocks mentioned. The Motley Fool recommends 3M. The Motley Fool owns shares of General Electric Company.

The article Prospects Look Bright for This Company originally appeared on Fool.com and is written by siraj sarwar.

siraj is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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