Want $3,000 in Passive Income? Invest $20,000 in These 2 Dow Dividend Kings and Wait 5 Years

Key Points

These two companies have historically been able to raise their dividends through periods of high inflation.

3M has its issues, but its valuation and dividend yield are too attractive to ignore.

P&G continues to post strong organic growth in the face of rising costs.

According to last week’s federal Consumer Price Index report, U.S. inflation is now the highest it has been in 40 years. Inflation of 7.5% means that costs will go up and many businesses will have a difficult time retaining high margins. Companies that produce positive free cash flow, turn a profit, and maintain a sturdy balance sheet stand a better chance of persevering through elevated inflation, even if it lasts longer than expected.

3M ( NYSE:MMM ) and Procter & Gamble ( NYSE:PG ) aren’t the most exciting companies, but they make up for their lack of flair with stable and reliable dividends. 3M has paid and raised its dividend for 64 consecutive years, while P&G has paid and raised its dividend for 65 consecutive years. That makes both companies Dividend Kings — members of the S&P 500 that have paid and raised their dividends for at least 50 consecutive years. Here’s what makes 3M and P&G great buys now. Image source: Getty Images. 3M is turning its business around

Out of the 30 companies that make up the Dow Jones Industrial Average (DJIA), 3M has been the third-worst-performing over the past five years, beating only International Business Machines and Walgreens Boots Alliance . At recent prices, 3M has produced a paltry 3.7% total return over that stretch, compared to 91% for the DJIA.

In many ways, the maker of N95 masks and Post-it notes (among other things) deserved to underperform the S&P 500 and DJIA. From 2016 to 2020, 3M increased […]

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