3M boosts dividend, but suspends stock buybacks
Diversified manufacturer 3M Co., maker of Scotch tape and Post-it notes, said Tuesday its board has raised the company's regular quarterly dividend 2 percent to 51 cents but suspended its $7 billion stock repurchase program in an effort to preserve cash.
The dividend is payable on March 12 to shareholders of record on Feb. 20.
The board said in the interest of preserving cash and shoring up its balance sheet, it will suspend stock buybacks. However, it extended its $7 billion stock buyback plan, which had been expected to expire this month, until the current $2.6 billion balance has been spent.
As of Dec. 31, 3M had 693.5 million common shares outstanding.
Shares fell $3.03, or nearly 6 percent, to close earlier at $51.08 on a dismal day for the broader markets.
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