Cummins Inc. (NYSE:CMI) Raises Dividend to $1.31 Per Share

Cummins Inc. (NYSE:CMI) announced a quarterly dividend on Tuesday, July 9th, RTT News reports. Stockholders of record on Wednesday, August 21st will be paid a dividend of 1.311 per share on Tuesday, September 3rd. This represents a $5.24 annualized dividend and a dividend yield of 3.51%. The ex-dividend date is Tuesday, August 20th. This is a positive change from Cummins’s previous quarterly dividend of $1.14.

Cummins has raised its dividend payment by an average of 8.1% annually over the last three years and has increased its dividend every year for the last 9 years. Cummins has a payout ratio of 35.1% indicating that its dividend is sufficiently covered by earnings. Analysts expect Cummins to earn $14.48 per share next year, which means the company should continue to be able to cover its $5.24 annual dividend with an expected future payout ratio of 36.2%.

Shares of Cummins stock opened at $149.25 on Friday. The stock has a market cap of $23.04 billion, a PE ratio of 11.28, a price-to-earnings-growth ratio of 1.15 and a beta of 1.14. The business has a fifty day simple moving average of $164.87 and a 200-day simple moving average of $161.01. The company has a quick ratio of 1.04, a current ratio of 1.66 and a debt-to-equity ratio of 0.18. Cummins has a 12 month low of $124.40 and a 12 month high of $175.91.

Cummins (NYSE:CMI) last issued its earnings results on Tuesday, July 30th. The company reported $4.27 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $4.38 by ($0.11). The business had revenue of $6.22 billion during the quarter, compared to analyst estimates of $6.36 billion. Cummins had a return on equity of 29.75% and a net margin of 10.74%. The business’s quarterly revenue was up 1.5% on a year-over-year basis. During the same period last year, the business earned $4.14 EPS. Analysts expect that Cummins will post 15.84 EPS for the current fiscal year.

Several analysts have recently commented on CMI shares. Stifel Nicolaus raised their target price on Cummins from $176.00 to $183.00 and gave the stock a “buy” rating in a research report on Wednesday, May 1st. Morgan Stanley decreased their target price on Cummins from $167.00 to $162.00 and set an “equal weight” rating for the company in a research report on Wednesday, July 31st. Credit Suisse Group raised their target price on Cummins from $198.00 to $203.00 and gave the stock an “outperform” rating in a research report on Wednesday, July 31st. Loop Capital cut Cummins from a “hold” rating to a “sell” rating and decreased their target price for the stock from $168.00 to $145.00 in a research report on Tuesday, July 2nd. Finally, Evercore ISI reaffirmed an “in-line” rating and issued a $169.00 target price (up previously from $163.00) on shares of Cummins in a research report on Friday, May 31st. Three investment analysts have rated the stock with a sell rating, eleven have given a hold rating and six have assigned a buy rating to the company’s stock. The company currently has an average rating of “Hold” and an average price target of $166.67.

About Cummins

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, and engine-related component products worldwide. It operates through four segments: Engine, Distribution, Components, and Power Systems segments. The Engine segment manufactures and markets a range of diesel and natural gas powered engines under the Cummins and other customer brands for the heavy-and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets.

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Dividend History for Cummins (NYSE:CMI)

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