3M Company (NYSE: MMM) is set to release its earnings results for the fourth quarter on January 23, 2024. Analysts are expecting the Saint Paul, Minnesota-based company to report earnings of $2.31 per share on revenue of $7.70 billion, according to data from Benzinga Pro.
In recent news, 3M has received a $34.2 million award to enhance the treatment of traumatic wounds from the point-of-injury to the hospital. This development has generated buzz around the company and attracted the attention of investors who may be looking to capitalize on potential gains from 3M’s dividends.
Currently, 3M offers an annual dividend yield of 5.57%, which amounts to a quarterly dividend of $1.50 per share or $6.00 per year. This dividend yield presents an opportunity for investors to earn a regular income of $500 per month.
To earn $500 per month, or $6,000 annually, from dividends alone, an investor would need an investment of approximately $107,760 or around 1,000 shares of 3M. For a more modest income of $100 per month, or $1,200 per year, an investment of $21,552 or around 200 shares would be required.
It’s important to note that dividend yield can change over time as both the dividend payment and the stock price fluctuate. The dividend yield is calculated by dividing the annual dividend payment by the stock’s current price.
For instance, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). If the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).
Changes in the dividend payment can also impact the yield. If a company increases its dividend, the yield will increase, provided the stock price remains the same. Conversely, if the dividend payment decreases, the yield will also decrease.
In terms of price action, shares of 3M gained 1.2% to close at $107.76 on Friday.
In conclusion, 3M Company is expected to release its fourth-quarter earnings results, and investors are eyeing potential gains from the company’s dividends. With an annual dividend yield of 5.57%, investors have the opportunity to earn a regular income from their investment in 3M shares. However, it’s important to consider that dividend yield can change over time as both the dividend payment and the stock price fluctuate.
