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3M May Have a High Yield, but I’d Keep It at Arm’s Length

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3M‘s (NYSE: MMM) 5.5% dividend yield is compelling, but it’s not enough to offset the company’s problems.

A company’s ability to meet guidance and to generate revenue growth and margin expansion are critical considerations when investing in a stock. Unfortunately, based on recent history, 3M is, arguably, failing on all three counts.

One of 3M’s significant shareholders, Flossbach von Storch, isn’t satisfied with its performance. The asset manager’s co-founder Bert Flossbach has already written to 3M’s management and expressed concern about how it’s being run, and about management’s positive statements regarding the company.

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