Is 3M Stock a Buy?

The industrial conglomerate has long been a fascinating investment proposition. With a 64-year history of increasing dividends and a 5.6% yield, it's easy to see why 3M (NYSE: MMM) will attract income-seeking investors. In addition, restructuring actions promise to improve profit margins and drive earnings growth as its cyclical end markets improve over time. Does it all add up to make the stock a buy?

The industrial conglomerate is far from perfect. The company's high-profile legal settlements relating to its use of PFAS chemicals and allegedly faulty combat-arms earplugs have attracted all the attention. In addition, I would also point out the company's history of missing its growth guidance and its disappointing operational performance characterized by the long-term decline in its profit margin. This comes after a period of substantial acquisition and disposal activity, principally in its healthcare segment, none of which appears to have helped its margins.