3M (NYSE: MMM) is one of the most wide-ranging conglomerates among the 30 stocks of the Dow Jones Industrials (DJINDICES: ^DJI). Many investors know 3M for its office supply products, but the company also makes key items for the energy, manufacturing, and healthcare industries and is a strong innovator in its field.
Investors in 3M have enjoyed strong gains over time, both through share-price appreciation and from dividend income. Yet one thing that 3M hasn't done for its shareholders in 15 years is to split its shares, and with the stock price having climbed precipitously in the past year, some believe that the conglomerate should make its move now. Let's take a closer look at 3M's past with an eye toward deciding whether 2018 could be the year a stock split finally happens.
When has 3M done stock splits?
3M has a long history of stock splits that dates back for nearly a century. Someone who owned a single share of 3M 100 years ago would have more than 3,000 shares of stock now because of all the times that 3M has split its shares.
| Date of Split | Split Ratio | 100 Shares in 1919 Became: |
|---|---|---|
| Dec. 24, 1920 | 2-for-1 | 200 shares |
| Dec. 16, 1922 | 2-for-1 | 400 shares |
| Nov. 13, 1945 | 2-for-1 | 800 shares |
| Jan. 8, 1951 | 4 for 1 | 3,200 shares |
| May 18, 1956 | 2-for-1 | 6,400 shares |
| May 15, 1960 | 3 for 1 | 19,200 shares |
| May 23, 1972 | 2-for-1 | 38,400 shares |
| May 22, 1987 | 2-for-1 | 76,800 shares |
| March 15, 1994 | 2-for-1 | 153,600 shares |
| Sept. 29, 2003 | 2-for-1 | 307,200 shares |
Data source: 3M investor relations.
Over the past 50 years, 3M stock has generated double-digit average annual total returns. Dividends have played some role in its performance, but much of 3M's value has come from share-price appreciation. The conglomerate has responded to regular rises in its share price with splits from time to time.
However, the exact share price level that has motivated 3M to do a stock split has changed over time. For instance, prior to the 1972 stock split, 3M stock had traded well above $100 per share for a long time, making the conglomerate unusual in choosing not to execute a split. 3M's move came when the stock approached the $160 level.
Subsequent moves in the 1980s and 1990s also came after the stock had been at triple-digit levels for a reasonable length of time. 3M's most recent split in 2003 made investors wait until the stock had climbed to between $140 and $150. Overall, this has given 3M a somewhat more conservative reputation in doing stock splits, but it also hasn't shied away from doing so when the stock not only reached certain levels but showed a strong likelihood of remaining there.