A dividend yield is a way to measure how much money you can make from owning a share of a company. It tells you the percentage of the share price that the company pays you as a dividend. If the share price goes up, the yield goes down because you get less money for each dollar you spend. If the share price goes down, the yield goes up because you get more money for each dollon you spend. The same is true if the company changes how much money it pays out as a dividend. Read from source...
1. The title is misleading and clickbait-y. It suggests that the reader can earn $500 a month from 3M stock ahead of Q4 earnings print, but it does not specify how or why this is possible or realistic. There is no clear explanation of the strategy or method behind this claim.
2. The article uses outdated and irrelevant information. For example, it mentions the dividend yield based on a $50 stock price and a $2 dividend payment, which is not current or accurate as of the date of publication. It also references MMM (3M) as if it were an acronym for something else, which is confusing and unclear.
3. The article does not provide any evidence or data to support its claims. It simply states that 3M is a "quality" company and has a history of consistent dividend payments, but it does not show how this translates into a viable investment opportunity or why the reader should buy the stock now ahead of earnings.
4. The article includes unnecessary and unrelated content, such as the mention of hedge funds, pre-IPO shares, AI unicorns, and Benzinga's various tools and features. This does not add any value or relevance to the main topic of the article, which is 3M stock and dividend yield. It seems like an attempt to fill up space and generate more clicks, rather than informing or educating the reader.
5. The article ends with a disclaimer that Benzinga does not provide investment advice, but it does not follow this up with any actual analysis, recommendations, or insights. It leaves the reader hanging without any clear action steps or guidance on how to profit from 3M stock or dividend yield.
6. The article has a tone of optimism and excitement, which may appeal to some readers who are looking for quick and easy money, but it also implies that there is no risk or downside involved in investing in 3M stock. It does not acknowledge the potential challenges, drawbacks, or limitations of this strategy, such as market volatility, inflation, taxes, fees, etc.
1. Buy 3M stock at the current market price of $107.76 per share, as it offers a dividend yield of 4% and has a strong track record of increasing its dividend payments every year since 2015. The potential upside from this investment is significant, as the company is expected to report higher earnings in Q4 and boost its dividend payout ratio further. This would result in an even higher dividend yield for shareholders who buy now and hold until the next ex-dividend date.
2. Sell short 3M stock at a price above the current market price, as it may experience a sell-off due to increased competition from other industrial companies or regulatory pressures. This strategy would benefit from a decline in the stock price and generate profits for investors who are bearish on the company's outlook. However, this strategy also carries significant risks, as 3M has proven resilient in the past and may bounce back if it announces positive news or strong earnings results in Q4.