3M Stock Is Higher Despite Its Dividend Cut. Here's Why

3M is snapping its decades-long streak of dividend hikes, yet it's been one of the best Dow Jones stocks this week. Here's what you need to know.

artist rendition of 3M headquarters
(Image credit: AaronP/Bauer-Griffin/GC Images)

3M (MMM) stock gained nearly 5% Tuesday and is up another 3% Wednesday, making one of the best-performing best Dow Jones stocks so far this week. The upside comes as the Post-It note maker's first-quarter earnings and revenue beat offset news that MMM is cutting its dividend, putting an end to its six-decade streak of increases.

In the three months ended March 31, 3M said revenue increased 0.5% year-over-year to $7.7 billion and earnings per share (EPS) were up 21.3% to $2.39. 

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Joey Solitro

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.