Time to Buy This High-Yield Blue Chip Stock?
3M's (NYSE: MMM) recent disappointing earnings report left analysts scrambling to reduce price targets and the stock dropping 7% over the next three trading days. The stock's dividend yield is now close to 5%, which makes it worth considering, but there's more to the story. Is the sell-off in the stock a buying opportunity, or is the stock worth avoiding altogether?
The first thing to note about 3M is that its woeful stock performance over the past decade isn't just a consequence of its exposure to litigation over its use of per- and poly fluoroalkyl substances (PFAS) (3M will exit PFAS manufacturing by the end of 2025) or even faulty Combat Arms earplugs.
While litigation pressures are undoubtedly an issue, the underperformance at 3M is startling, particularly when compared with the S&P 500 and a multi-industrial peer like Illinois Tool Works.
Source Fool.com
