3M to Cut Dividend for First Time After Six Decades of Hikes
- Company reworks payout following spinoff of health-care unit
- Shares rise in early trading after quarterly earnings beat
3M Co. Post-It brand notes.
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3M Co. plans to slash its dividend, ending more than six decades of boosting the payout each year as it enters a new era following the spinoff of its health-care products division.
Starting in May, the manufacturing giant plans to pay a dividend at roughly 40% of its adjusted free cash flow, 3M said in a statement Tuesday as it reported better-than-expected first-quarter earnings. That compares to a payout that translated to more than 60% of its free cash flow last year.