3M Company (MMM), the conglomerate known for its innovative household and industrial products, has been making some major moves lately that have shaken up its stock and its position in the market. Last week, they dropped a bombshell by cutting their dividend for the first time in over 60 years! The slashed payout is a pretty big deal, considering it ends the stock's run as a Dividend King - a title it takes about half a century to earn.
But here's the thing: this dividend cut didn't come out of nowhere. 3M just finished spinning off its healthcare business, Solventum (SOLV), on April 1. And get this - that healthcare arm was responsible for roughly 30% of 3M's cash flows. So, when they said goodbye to Solventum, it was bound to shake things up financially.
