3M Company (MMM) is a diversified global manufacturing conglomerate. Founded in 1902, they’re a $107 billion (by market cap) industrial behemoth that employs 95,000 people. 3M operates across four business segments: Safety and Industrial, 34% of FY 2020 sales; Transportation and Electronics, 26%; Healthcare, 25%; Consumer, 16%. Corporate and Unallocated accounted for the remainder.

The Americas accounted for 51% of FY 2020 revenue; 30%, Asia Pacific; 19%, Europe, Middle East, and Africa. The company focuses on applying science across 12 areas of expertise: Automotive; Design & Construction; Manufacturing; Commercial Solutions; Electronics, Mining, Oil & Gas; Communications; Energy; Safety; Consumer; Healthcare; and Transportation. Already, 3M is a legend in this respect. They’ve increased their dividend for 63 consecutive years. That’s one of the longest such track records in existence, spanning wars, recessions, and even the pandemic.

This easily qualifies them to be a Dividend Aristocrat. It also crowns them a Dividend King. Dividend Kings are stocks that have increased their dividends for 50 or more consecutive years. CFRA rates MMM as a 4-star “BUY”, with a 12-month target price of $224.00. I came out roughly in the middle here. Averaging the three numbers out gives us a final valuation of $210.05, which would indicate the stock is possibly 13% undervalued.

Bottom line: 3M Company (MMM) is a blue-chip Dividend King with incredible scale, diversification, and breadth. And their future could look even better than their past, which is already legendary. With a market-beating yield, more than 60 consecutive years of dividend increases, double-digit long-term dividend growth, a moderate payout ratio, and the potential that shares are 13% undervalued, this classic dividend growth stock looks on sale.

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