How to Buy 3M Stock in 2021
3M is a multinational conglomerate that operates in numerous fields, including consumer goods, health care, and worker safety. They use science and technology to innovate and nurture industry progress. With more than a century of experience, 3M is a public company that should be considered by many investors.
In this article, you will find out how to buy 3M stocks, how profitable the company may be for you, and many other details to help you determine if you want to be a 3M stockholder.
Learn How to Buy 3M Stocks in 3 Easy Steps
Find a Broker
Once you find the right broker, signing up for an account is easy. It is important to fill in the required information, including your name, phone number, email, and password. It is possible that they will ask for your ID to verify your account. Remember that the broker of your choice must have access to 3M stocks.
Analyse a 3M Chart
Once your account is verified, you should search for 3M charts on the broker’s platform. Obtaining this information is an important step if you want to determine how suitable the company is for your portfolio. At the same time, you should be able to interpret these charts to make performance forecasts and identify price trends.
Once your account is verified, and you have decided to enter the market, you should start by depositing funds in your new investment account. The minimum amount, payment method, and how long it takes to receive the funds in the account depend on your chosen broker. If you trade in a different currency, you should also check if there are any other fees you should cover when you deposit or withdraw money.
3M Company Overview
3M is a multinational U.S company that offers its products and services in over 200 countries. It has more than 60,000 products under different brands, including home improvement products, health care, car-care, software, electronic and electric products, and many more.
3M Business Model and Revenue Streams
3M is now one of the largest US companies by total revenues and has a market cap of around $115 billion. In 2020, the company made more than $32.2 billion in revenues and an operating cash flow 8.59 billion. Aside from its healthy growth rate, 3M is also one of the most innovation-focused companies in the world, acquiring around 3,000 new patents per year.
3M is the parent company of a highly diversified group of brands covering worker safety, health care, and different consumer goods. The business model is based on designing and manufacturing various products and services for its clients.
This company offers internationally recognized products through its different brands. Some of them are Nexcare, Scotch, Post-it, Littmann, Scotch Brite, and others. Mike Roman, the company’s Chairman and Chief Executive Officer, stated that the company’s mission is to improve people’s lives and nurture progress that can solve global challenges.
History of 3M
3M stands for Minnesota, Mining, and Manufacturing Company. In 1902, the company was established as a small mining firm in Minnesota by John Dwan, Edgar Ober, and Lucius Ordway who decided to use the minerals in the area to create grinding wheels and sandpaper.
However, these minerals turned out to be intrusive rocks that could not be used for commercial purposes. One of the founders left the company, while the other two took over the company and relocated to Duluth, where they started designing and manufacturing sandpaper. The fourth and fifth executives joined them several years later.
In 1916, the company started to pay dividends as its financial performance became stronger after relocating to St. Paul in 1910. The company moved to its current location, Maplewood, Minnesota, in 1952.
Brokers That Offer 3M shares
We have shortlisted the best brokers that offer 3M shares. This list contains hand-picked brokers that follow all regulations and have a proven track record of great practices and benefits for their clients.
Should I Invest in 3M Stock?
3M may be an excellent addition to your portfolio depending on the current stock price. Check out the following sections to find out more about the investment potential, whether it is suitable for your strategy, and more.
3M Stock Investment Potential
Given the global outreach of the market, 3M has already proved its worth. Many investors opt to invest in this company due to its variable product portfolio. At the same time, you should also keep in mind that investments always carry a certain degree of risk due to market volatility or unexpected events.
For instance, breaking news or corporate decisions can impact the share price and, subsequently, on the value of your investment. So, in order to make sure it is a good option for their portfolio, investors make information-based decisions using knowledge and market data. This will keep them from making risky decisions.
What Kinds of Investors Should Include 3M in Their Portfolios?
It could be a good idea to make sure your investment goals align with the company before you add it to your portfolio. This compatibility shows you that the stock is suitable for your strategy.
For instance, you should consider whether this innovation-focused company is a good match for your objectives. 3M has a broad product portfolio, so it can serve as a great diversification tool.
Also, 3M has paid dividends to their shareholders for over 100 years which can benefit long-term investors. If you plan to invest for the future, these dividends can help you grow your portfolio or simply capitalize on your principal regularly.
How Much Should I Invest in 3M?
How much you should invest in 3M depends on the budget you’ve assigned for your investment goals. You should calculate the risk and expected returns of the asset, along with your overall portfolio. Then, adjust the dollar amount so you can have a portfolio with a risk-return profile that makes you feel comfortable and confident.
How to Buy Shares in 3M Stock?
First, you must open an account with a broker or join a direct stock purchase plan (DSPP), which will be detailed further below. If you choose the broker, you can follow the guide presented previously to deposit money and buy 3M stock.
Buy 3M Shares Using a Broker
When accessing 3M stocks through a broker, you will be offered a variety of services and tools. You can trade through different platforms, contact customer support, get informed via the educational section, and even choose different trading strategies.
For their service, brokers will charge fees and commissions for account maintenance, transactions, and more. These depend on your chosen broker and will be more or less significant depending on how and what you will be trading.
A broker will also allow you to access more markets and stocks if you want a diversified portfolio. Checking their offering before joining is ideal if you’re going to make more investments in the future.
Buy 3M Shares with a Direct Stock Purchase Plan (DSPP)
A direct stock purchase plan or DSPP is a plan for investors who want to invest without using the intermediary services provided by a brokerage firm. DSPPs are programs that allow access to stocks directly from a company. The transaction is conducted by a third party, known as a transfer agent.
However, DSPPs also charge fees for this service, but the cost may be lower than brokerages. The overall amount depends on your needs, preferences, and the DSPP’s terms and conditions.
A direct stock purchase plan is usually attractive for anyone who wants to avoid registering with a broker, but this limits access to the financial market. Also, long-term investors that want a distinct shareowner foundation could be interested in DSPP.
Frequently Asked Questions
The best stocks always depend on your objectives and trading strategy. If you want to invest in a well-established, innovative company, 3M may represent a great opportunity. It is important to consider your risk profile and investment purposes before choosing your stocks.
3M has been a successful company for over 100 years. Although 2020 was a challenging year for nearly all industries, 3M proved its resilience and managed to overcome many hurdles while quickly adapting to the new market trends.
There are numerous investment strategies that help investors grow their earnings. It is important to pick the right strategy and the matching stocks.
The best platform to trade 3M stocks depends on your knowledge and experience. For example, real-time quotes, customizable interfaces, charts, and risk management may be necessary for a new investor. Seasoned traders may opt for advanced charts instead of a thorough educational section.
3M is listed on the New York Stock Exchange, which is open Monday through Friday, from 9:30 A.M. to 4:00 P.M (EST).
3M was first listed on the New York Stock Exchange (NYSE) in 1946 under the symbol “MMM”.