3M Company: Don’t Buy Into Lawsuits In 2023


  • The 3M Company showed up on our screening results targeting dividend champions.
  • It is ranked the 8th top candidate among all 144 dividend champs featuring the best combination of quality and valuation.
  • Digging a little deeper, the stock indeed offers an attractive combination of profitability and valuation discounts.
  • However, the ongoing lawsuits surrounding its earplugs create too much uncertainty. Meantime, 3M also faces other legal battles such as the dumping of PFAS chemicals.
  • I don’t see the valuation discount properly compensating for the risks, and it is against our overall philosophy of NOT buying into lawsuits.
3M World Headquarters



We regularly scan the stock market by the so-called Magic Formula (“MF”) method. Readers familiar with this method can skip this entire session and directly to the next section to see our detailed analysis. The MF investing method was invented by Joel Greenblatt

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Join Envision Early Retirement to navigate such a turbulent market.

  • Receive our best ideas, actionable and unambiguous, across multiple assets.
  • Access our real-money portfolios, trade alerts, and transparent performance reporting.
  • Use our proprietary allocation strategies to isolate and control risks.

We have helped our members beat S&P 500 with LOWER drawdowns despite the extreme volatilities in both the equity AND bond market.

Join for a 100% Risk-Free trial and see if our proven method can help you too. You do not need to pay for the costly lessons from the market itself.

Leave a Reply

Your email address will not be published. Required fields are marked *