After a Volatile Run, Here's the Honest Buy, Sell, or Hold on 3M
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By Reuben Gregg Brewer – Apr 26, 2026 at 8:15AM ESTKey PointsShares of 3M have risen nearly 70% over the past three years, but are still down 11% over the past five years.The company has restructured its business, but legal issues continue to cast a dark cloud over its future.In the industrial sector, 3M (MMM +0.79%) has an iconic name and an impressive history. However, it has also been working through a very difficult period. Owning the stock has been a rollercoaster ride. The stock has been generally rising over the past three years, but investors shouldn't go in thinking that the volatility is over just yet. Buy 3M? There are many things to like about 3M. For example, it is an iconic industrial giant with a broadly diversified portfolio. While the dividend was reduced in 2024 following a spin-off (more on this move below), it has a long history of rewarding investors with dividend increases. In fact, the dividend has already been increased twice since the reduction, showing that the dividend is back in growth mode. Image source: Getty Images. The business, meanwhile, is doing reasonably well, with adjusted earnings up 10% in 2025. Adjusted earnings rose nearly 14% in the first quarter of 2026. Add in a well above market 2.1% dividend yield, and you can see why long-term growth and income focused investors might find the stock appealing. Sell 3M? That said, 3M has been a very volatile stock, and the business has changed dramatically over the past few years. The biggest event was the spin-off of Solventum (SOLV 0.64%). That company is basically 3M's former healthcare division, which was its fastest-growing business. Management spun that business off to raise the cash it needed to address material legal issues related to earplugs it sold to the military and to forever chemicals it has long produced. The Solventum spin-off was the right move and gives 3M significant leeway to address its legal troubles. However, those legal headwinds aren't over yet and are likely to remain a dark cloud for years to come. Worse, the company can't actually provide much information about the legal proceedings, so investors don't have a good way to track what is going on. If you don't like uncertainty, 3M is a stock you should probably consider selling. Notably, one of the adjustments made to adjusted earnings in 2025 was to remove $1.95 per share of litigation-related expenses. ExpandNYSE: MMM3MToday's Change(0.79%) $1.15Current Price$145.99Key Data PointsMarket Cap$76BDay's Range$144.00 - $146.2852wk Range$134.85 - $177.41Volume5.9MAvg Vol4MGross Margin39.55%Dividend Yield2.03% Hold 3M? If you have owned 3M for a few years, you have lived through a rough period. The stock is up nearly 70% over the past three years, but down 11% over the past five years. And it is currently off its 52-week high by nearly 15%. But, if you have owned through this rollercoaster ride, there's no particular reason to sell it now unless you are tired of the volatility. In the long term, 3M is likely to resolve its legal issues and continue to grow its business, albeit more slowly than before, following the Solventum spinoff. Just recognize that volatility is likely to persist for a while as Wall Street continues to react to legal news, the company's financial results, and the typical volatility of the cyclical industrial sector.Read NextApr 21, 2026 •By Motley Fool Transcribing3M (MMM) Q1 2026 Earnings Call TranscriptApr 20, 2026 •By Parkev Tatevosian, CFAShould You Buy 3M Stock Before April 21?Apr 15, 2026 •By Reuben Gregg Brewer3M vs.
United Parcel Service: One of These Industrial Stocks Is a Much Better Buy Right NowApr 15, 2026 •By Jason HallDividend Kings of 2026Apr 26, 2026 •By Sean WilliamsHistory Has a $1 Trillion Warning for SpaceX and Its Prospective ShareholdersApr 26, 2026 •By Dominic BasultoGot $1,000 to Invest in Crypto? Here's How to Think About Allocating It.About the AuthorReuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewerStocks Mentioned3MNYSE: MMM$145.99(+0.79%)+$1.15SolventumNYSE: SOLV$68.52(-0.64%)-$0.44*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.