Two COVID-Proof Stock Ideas For Retirees

Each month, we issue The Mike’s Buy List for our DSR members. They get our best ideas for both U.S. and Canadian dividend stocks. The first Friday of each month, they receive our top 10 growth and top 10 retirement (yield over 4%+) investment ideas.

As we prepare for another surge of COVID-19 cases, it’s more important than ever to have the right holdings in your portfolio. Last time, I covered two dividend growth stocks. Now, let’s cover two options for income-seeking investors.

 

3M Co (MMM)

What’s the story?

This giant doesn’t need much presentation. It’s probably on many investors’ watch list too… but it rarely is on sale!

3M had some good news for investors during September. It reported August sales growth of 2% Y/Y to $2.7B, led by a 23% rise in Health Care. Organic local-currency sales declined 2%, while acquisitions, net of divestitures, and foreign currency translation, increased sales Y/Y by 3% and 1%, respectively. Total sales grew 6% in Safety and Industrial, and 3% in Consumer, while Transportation and Electronics declined 11%.

Following these results, the company estimates Q3 sales to be in the range of $8.2B-$8.3B vs. $8.11B consensus. It looks like MMM has gone through the worst and is ready to bounce back going forward.

The company also announced it is working with advisers on a potential sale of its food safety unit in a deal that could fetch $3.5B, Bloomberg reports.

Business Model

3M is a multinational conglomerate that has operated since 1902 when it was known as Minnesota Mining and Manufacturing. The company is well-known for its research and development laboratory, and the firm leverages its science and technology across multiple product categories. As of 2019, 3M is organized into four business segments: safety and industrial, transportation and electronics, healthcare, and consumer. About 60% of the company’s revenue comes from outside the United States, with the safety and industrial segment constituting most of the firm’s net sales. Many of the company’s 55,000-plus products touch and concern a variety of consumers and end markets.

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