3M Ends Six-Decade Dividend Increase Streak, Shares Rise on Positive Earnings

Despite ending its long-standing tradition of annual dividend increases, 3M's stock surged following better-than-expected Q1 earnings and optimistic future projections.

• 3M announced it will now base its dividend on 40% of its adjusted free cash flow, marking the end of over 60 years of consistent dividend increases.
• The company's Q1 earnings exceeded expectations with an adjusted EPS of $2.39, surpassing the forecast of $2.03.
• Outgoing CEO Mike Roman will transition to executive chairman as Bill Brown takes over as CEO.
• Investors reacted positively, with 3M's stock price climbing significantly in early trading.
• The company retains a 19.9% stake in its spun-off health care division, Solventum, planning to monetize it over the next five years.

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