5 Dividend Stocks Redditors are Buying for Recession

3. 3M Company (NYSE:MMM)

Dividend Yield as of July 10: 4.63%

3M Company (NYSE:MMM) is a mining and manufacturing company that produces a wide range of products in the fields of industry, healthcare, and consumer goods.

3M Company (NYSE:MMM) has raised its dividend every year since 1958, including through ten recessions, coming through as one of the best dividend stocks for recession. In 2021, the company generated $5.6 billion in free cash flow and paid $3.35 billion in dividends. This shows that its dividends are well covered within its FCF for the foreseeable future. 3M Company (NYSE:MMM) currently offers a quarterly payout of $1.49 per share, with a yield of 4.63% as of July 10. The company’s payout ratio has also improved to 59.3% in 2022, from 68.5% in 2020.

In July, Barclays lowered its price target on 3M Company (NYSE:MMM) to $143, with an ‘Underweight’ rating on the shares, as it sees declining demand for industrial products.

At the end of March 2022, 3M Company (NYSE:MMM) remained popular among elite funds, as 51 hedge funds owned stakes in the company, up from 41 a quarter earlier. Those 51 stakes held a collective value of over $1.53 billion. With over 6 million shares, Fisher Asset Management was the company’s largest stakeholder in Q1.