PPC Ian

PPC Ian

Dividend Investing For Everyone

  • Home
  • About PPC Ian
  • My Dividend Stock Portfolio
  • Sin Stock Investing Guide
  • Stock Analysis Worksheet
  • Yield On Cost Worksheet

Value Dividend Stock: I Bought A Lot of Shares (But It Carries Risk)

By PPC Ian Leave a Comment Aug 5 0

It’s very rare that a core, world-class dividend stock goes on sale. It seems that 3M (MMM) has been on sale for a number of years now, with the discounts getting more heavy in recent years. There’s rarely a free lunch with investing. Meaning: When a stock goes down, there is typically a reason. The question, however, is can the company survive the challenges it faces and re-emerge as a winner? I just published an in-depth video on YouTube sharing my thoughts on 3M’s Q2 earnings report, with my thoughts on their large litigation risks. Without a doubt, MMM is one of the riskier positions in my portfolio, especially when I take into consideration that its ~5.0% portfolio weight. In today’s blog post, I want to share a few of my top-level thoughts about 3M (MMM), but first make sure to watch my YouTube video!

Watch My Brand New Dividend Investing YouTube Video

Thought 1: The Litigation Risk Is Real

3M stock is rallying on the news that they are creating a $1 billion trust for earplug litigation related to their acquisition of Aearo Tech back in 2008. They are also setting aside another $240 million for case-related expenses. I believe the stock has rallied on this news because 1) the exposure is less than previously anticipated and 2) there is some directional level of certainty around the matter (Wall Street hates uncertainty). (Side note: I like to buy when there is uncertainty because I can extract value that way as a long-term investor taking on calculated risk.)

The bigger issue, in my eyes, is their PFAS-related litigation. PFAS is a chemical that can seep into water, air, and soil. At this point in time, the cost of possible/alleged PFAS-relate exposure is unknown. What I do know, however, is we live in a world where anything is possible. Just look at 2022. In fact, I just shared a Dividend Investing Video that highlights some crazy, remarkable trends affecting investors in 2022. Because it’s almost impossible to price risk in 2022, I personally have big concerns around PFAS litigation. (And, the rest of the investing community does as well, hence the forward PE ratio trending in the 13s for MMM.)

Thought 2: I’m Excited About The Healthcare Spin-Off

Also in their Q2 earnings release, 3M announced the spin-off of their healthcare division (anticipated to close by the end of 2023). I was excited to see this because 1) it probably allows the healthcare division to avoid some of the existing litigation risk, 2) healthcare is their fastest-growing division, and 3) I see this being a productive spin-off (much like UTX combining with Raytheon and spinning off OTIS and CARR). I plan to hold onto both New 3M and Healthcare Spin-Off. The only downside here is I’m now going to have yet another position to manage. I have too many positions in my portfolio, and will eventually need to start trimming down, just a little bit.

Thought 3: I Bought A Lot More. What Else Can I Do?

As a dividend stock investor, I am fighting tooth and nail to reach the goal of dividend-based FIRE (financial independence retire early). I’ve made great progress against this goal, but I’m still on the journey. Our world is more uncertain than ever. There is more perceived “risk” in anything these days. MMM is a risky position in my portfolio, but ultimately I’m taking on calculated risk to reach my gaol. At a 4.19% starting dividend yield (with possible growth ahead once litigation is figured out), I cannot ignore the opportunity. What else can I do? Sit home, scared? Or, go out there and fight for my dividend-based freedom? I am choosing the latter, for my personal situation.

Please share in the comments below what you think about 3M stock. As a dividend investor, it’s a bit challenging to see the slow pace of dividend growth in recent years. That being said, the reasonable payout ratio gives me confidence that stronger dividend growth may resume after the litigation challenges have passed. It’s just going to take a good amount of patience. Perhaps I’ll just let this one be (with dividend reinvestment intact) and check back in 5 years.

As we close out today, I want to say “Aloha” and “Mahalo” for reading my blog post and watching my latest YouTube video. Please make sure to subscribe to my YouTube channel for more dividend investing videos.

DISCLOSURE: I am long 3M (MMM), United Technologies (UTX), Otis (OTIS), and Carrier (CARR). I own these stocks in my personal dividend stock portfolio.

DISCLAIMER: All information and data on my YouTube Channel, blog, email newsletters, white papers, Excel files, and other materials is solely for informational purposes. I make no representations as to the accuracy, completeness, suitability or validity of any information. I will not be liable for any errors, omissions, losses, injuries or damages arising from its display or use. All information is provided AS IS with no warranties, and confers no rights. I will not be responsible for the accuracy of material that is linked on this site.

Because the information herein is based on my personal opinion and experience, it should not be considered professional financial investment advice or tax advice. The ideas and strategies that I provide should never be used without first assessing your own personal/financial situation, or without consulting a financial and/or tax professional. My thoughts and opinions may also change from time to time as I acquire more knowledge. These are, as discussed above, solely my thoughts and opinions. I reserve the right to delete any comments for any reason (abusive in nature, contain profanity, etc.). Your continued reading/use of my YouTube Channel, blog, email newsletters, whitepapers, Excel files, and other materials constitutes your agreement with and acceptance of this disclaimer.

COPYRIGHT: All PPC Ian videos, Excel files, guides, and other content are (c) Copyright IJL Productions LLC. PPC Ian is a registered trademark ™ of IJL Productions LLC.

Dividend Stock Investing Tips That I Live By

By PPC Ian Leave a Comment Jul 28 0

Our world and our economy are certainly changing in 2022! In fact, I just shared a YouTube video about Terrible Trends I See For Investors. There’s a lot to worry about. That being said, times of great worry can create huge opportunities for investors with very long-term, multi-decade time horizons. That’s why I’m just sticking […]

Continue

Voyager App Review: My Experience With Voyager Bitcoin & Cryptocurrency App

By PPC Ian Leave a Comment Mar 19 2

Today, I am excited to share my personal review of the Voyager App (the number 21 most popular financial services app in the Apple app store, according to App Annie). I now have $8,700.00 in my Voyager account (and growing), and I have been thrilled with my experience so far. As you can see in […]

Continue

Show Your Support For PPC Ian On Patreon

By PPC Ian Leave a Comment Jun 29 2

Hi, Everyone! As many of you are aware, I share all of my best dividend investing content for free. Pouring countless hours into each video, my PPC Ian Dividend Investing For Everyone YouTube Channel and community is a true passion of mine. With over 60,000 subscribers and 4.7 million video views, I could not be […]

Continue

Brand New Dividend Stock Investing Merch Is Here

By PPC Ian Leave a Comment Apr 11 0

Dividend Stock Investors: You have been waiting for this! I am thrilled to announce that four new custom dividend investing merch styles (t-shirts and sweatshirts) are now available in my PPC Ian Teespring Store: https://teespring.com/stores/ppcian The designs are custom, the quality is top-notch, and these styles are sure to impress. I’m personally wearing them on […]

Continue

Bank Stock Analysis & The Power of Our Community

By PPC Ian Leave a Comment Jan 8 4

A big purpose of PPC Ian Dividend Investing For Everyone is community. We are a community of like-minded dividend investors, almost 50,000 strong, and we support each other. The community is becoming stronger and stronger, and we have experts around the world with deep knowledge across many different sectors. I recently filmed a video on […]

Continue

PPC Ian Dividend Investing Merch Is Now Available

By PPC Ian Leave a Comment Aug 30 20

Attention Dividend Investors: I’m thrilled to unveil my new merch store, and introduce three new custom PPC Ian dividend investing t-shirt designs! Here’s the link: https://teespring.com/stores/ppcian Now you can share your love of dividends with the world, and at the same time help support my channel. These are premium quality, 100% cotton, tagless t-shirts, with […]

Continue

I’m Buying This Dividend Stock Pick Immediately (AbbVie)

By PPC Ian Leave a Comment Jun 26 0

I am incredibly excited to announce that I am purchasing position number 41 in my dividend stock portfolio. I’m talking about a stock that has gone on bargain basement sale. As a dividend value investor, I just cannot pass up this opportunity. I’m talking about AbbVie (ABBV). If you’ve been following my YouTube Channel for […]

Continue

Dividend Investing For Beginners (My Complete Guide)

By PPC Ian Leave a Comment Jun 17 17

My dividend investing YouTube Channel, PPC Ian, is now 29,000 dividend investors strong! With so many new subscribers and so many videos (198 on the topic of dividend investing spanning a staggering 69 hours and 30 minutes), I have received the same request over and over: "Ian, where do I start? Ian, where can a […]

Continue

Dividend Stock Pick

By PPC Ian Leave a Comment May 21 0

I truly enjoy a good buying opportunity in the stock market. I invest for dividends, and one day my dividends will cover all of my living expenses. When my favorite stocks go down in share price, my starting dividend yield goes up (in other words, I reach financial freedom faster). Needless to say, I love […]

Continue
  • 1
  • 2
  • 3
  • …
  • 49
  • Next Page »

About PPC Ian

Ian Lopuch (PPC Ian)Hi, I'm Ian Lopuch, also known as PPC Ian. I'm a Silicon Valley business executive with an incredible passion for dividend stocks (and investments that provide true passive income for the long-term). In fact, I have built a portfolio of 40 stocks that will one day pay for all of my living expenses. I enjoy blogging here about my passion for cash flow investing, while also sharing some other business and digital marketing insights from time-to-time.

Read More About PPC Ian

My Valued Sponsors

Advertise Here     Advertise Here

Let’s Talk Stocks

Watch My YouTube Videos See My Photos On Instagram Tweet Me on Twitter Like Me on Facebook Network With Me on LinkedIn

PPC Ian Tag Cloud

3q digital acquisio ad copy adlift admedia adwords affiliate marketing bid management bing blog anniversary blog commenting charity digital marketing dividend dividends domaining ebay partner network facebook ads facebook advertising goals google google adwords ian lopuch kenshoo lending club marin software mentorbox mentor box ppc associates ppc automation ppc career ppc jobs public speaking search alliance sem agency sem automation sem career sem software seo smx smx west stanford gsb weekend musings yahoo youtube

Posts By Category

PPC Ian Dividends Yield On Cost

My Favorite Dividend Stocks For 2018 and Beyond

Check This Out These Are Dividend Checks

I Invest For Dividends and Financial Freedom

Ian Lopuch Carmel CA

Angel Investing: My Experience With SAFE Agreements

The Five Minute Journal

The Five Minute Journal: My Review and Experience

Mentor Box

My Mentorbox Review

PPC Ian at Stanford Graduate School of Business

PPC Ian Presents at Stanford GSB Again

Stanford GSB Presentation

Video: Stanford Graduate School of Business

Net

Buying Domains on Sedo

BlueHost Web Hosting

BlueHost, Add-On Domains, and .htaccess

PPC Ian
Follow on
Twitter
Connect on
Facebook
  • Home
  • About PPC Ian
  • Consulting
  • Terms and Conditions
  • Privacy Policy
  • Affiliate Disclosure
  • Disclaimer
  • Contact Me
Copyright © 2009 through 2022 PPCIan.com (An IJL Productions LLC Site). All Rights Reserved.