5 Recession-Proof Dividend Stocks to Buy

2. 3M Company (NYSE:MMM)

Dividend Yield as of May 23: 4.14%
Number of Hedge Fund Holders: 41

3M Company (NYSE:MMM) is an American multinational company that manufactures products for a wide range of industries, such as healthcare and consumer goods. In Q4 2021, the company suffered a decline in hedge fund interest, as 41 hedge funds tracked by Insider Monkey held stakes in the company, down from 46 in the previous quarter. The total value of these stakes is over $1.56 billion.

In February, 3M Company (NYSE:MMM) announced a 63rd consecutive annual dividend hike, taking the quarterly dividend to $1.49 per share. In the past five years, the company’s dividend CAGR stood at 5.38%, making it one of the most reliable recession-proof dividend stocks. The stock’s dividend yield, as of May 23, stood at 4.14%. During the past decade, 3M Company (NYSE:MMM) has returned over 121% of reported net income to shareholders through dividends and share repurchases, signaling the financial strength of the company.

On April 26, 3M Company (NYSE:MMM) announced its Q1 2022 results, posting a revenue of $8.8 billion, which beat analysts’ expectations by $50 million. Moreover, the company’s EPS of $2.65 also surpassed the market consensus by $0.34. Though the company incurred losses during the financial crisis of 2008, the earnings recovered quickly in 2010 and presented a 27% growth from 2009 levels.

Though Citigroup expressed concerns regarding the supply chain issues, the firm remained positive on the solid quarterly earnings of 3M Company (NYSE:MMM) and set a price target of $151 on the stock, with a Neutral rating on the shares.