Want $1000 in Passive Income? Invest This Much in 3M Stock

By Lee Jackson Published Jul 31, 8:47AM EDT

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Want $1000 in Passive Income? Invest This Much in 3M Stock — © josefkubes / Shutterstock.com

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3M cut the dividend shareholders receive by over 50% in May.
The stock has rallied on the cut, as it helps the company’s balance sheet.
Grab this free report now: Access 2 legendary, high-yield dividend stocks Wall Street loves.

Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.

Why Invest in 3M?

This American multinational conglomerate operates in the fields of industry, worker safety, health care, and consumer goods.

Those looking to buy fallen angel Dividend Aristocrat stocks may want to consider shares of industrial/materials giant 3M Co. (NYSE: MMM | MMM Price Prediction) as a great contrarian idea and solid passive income-generating machine. The shares have rallied over the last month and still pay a solid 2.76% dividend.

3M operates through four segments:

Safety and Industrial
Transportation and Electronics
Health Care
Consumer

The Safety and Industrial segment offers:

Industrial abrasives and finishing for metalworking applications
Auto body repair solutions
Closure systems for personal hygiene products
Masking and packaging materials
Electrical products and materials for construction and maintenance
Power distribution and electrical original equipment manufacturers
Structural adhesives and tapes
Respiratory, hearing, eye, and fall protection solutions
Natural and color-coated mineral granules for shingles

The 3M Transportation and Electronics segment provides:

Ceramic solutions
Attachment tapes
Films, sound, and temperature management for vehicles
Premium large-format graphic films for advertising and fleet signage
Light management films and electronics assembly solutions
Packaging and interconnection solutions
Reflective signage for highway and vehicle safety

The company’s Healthcare segment offers:

Food safety indicator solutions
Healthcare procedure coding and reimbursement software
Skin, wound care, and infection prevention products and solutions
Dentistry and orthodontic solutions
Filtration and purification systems

The Consumer segment provides:

Consumer bandages
Braces, supports, and consumer respirators
Cleaning products for the home
Retail abrasives
Paint accessories
Car care DIY products
Picture hanging
Consumer air quality solutions
Stationery products

How many shares of 3M are needed to generate $1,000?

Investors looking to generate $1,000 per year in passive income by owning 3M shares, which pay $2.80 per share each year, would have to buy 357 shares of the stock at current trading prices. That would be approximately a $36,050 purchase, and with the stock acting much better since the dividend was reduced back in May, there could still be some big upside in the shares.

The stock traded as high as $170 just three years ago, in May 2021, and with Wall Street praising the fiscal moves the company is enacting, more analyst support could be on the way. Six Wall Street firms currently rate the stock a Buy.

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About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.