3M Surpasses Turnaround Goals Amid Dividend Sustainability Concerns

3M Co (NYSE: MMM) announced on September 15, 2026, that it is surpassing its key turnaround objectives. According to CEO William Brown, the company's progress is attributed to enhanced execution, new product launches, and strategic portfolio adjustments.

The company has improved its on-time delivery rates from the low 80% range to approximately 90%, reflecting operational discipline and a culture of accountability. However, concerns remain about dividend sustainability as the company's dividend growth rate has declined by 21.2% over the past three years, indicating a contraction in dividend increases.

Despite these challenges, 3M offers a 1.87% dividend yield with a low payout ratio of 35%. The stock currently reflects mixed signals on dividend sustainability and valuation, trading at a trailing P/E of 29.25x, well above its 5-year median P/E of 17.04x.