Comments on: MCD and MMM Dividends are Covered http://www.dividendtree.net/commentary/mcd-and-mmm-dividends-are-covered/ My journey of planting dividend investment seeds and watching it grow.... Thu, 29 Jul 2010 13:31:29 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Daniel M. Ryan http://www.dividendtree.net/commentary/mcd-and-mmm-dividends-are-covered/comment-page-1/#comment-185 Daniel M. Ryan Fri, 24 Jul 2009 04:48:44 +0000 http://www.dividendtree.net/?p=832#comment-185 In the case of AT&T, its free cash flow for 1Q '09 is about 1.5 times its net income for the same quarter. Although 2008's and '06's FCF was only slightly abone '08's earnings, 07's and '05's were also well above net income. On the other hand, 3M's FCF is often below its earnings. On these grounds I would have to second your opinion about 3M's dividend, but demur regarding your opinion of AT&T's dividend. Strangely, AT&T yields 6.44% while 3M yields only 2.94%. I suppose 3M is one best left to the growth guys... In the case of AT&T, its free cash flow for 1Q ’09 is about 1.5 times its net income for the same quarter. Although 2008′s and ’06′s FCF was only slightly abone ’08′s earnings, 07′s and ’05′s were also well above net income.

On the other hand, 3M’s FCF is often below its earnings. On these grounds I would have to second your opinion about 3M’s dividend, but demur regarding your opinion of AT&T’s dividend.

Strangely, AT&T yields 6.44% while 3M yields only 2.94%. I suppose 3M is one best left to the growth guys…

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