Cummins Inc. (NYSE:CMI) to Issue Quarterly Dividend of $2.20

Cummins Inc. (NYSE:CMI) announced a quarterly dividend on Sunday, July 12th. Stockholders of record on Friday, August 21st will be paid a dividend of 2.20 per share on Thursday, September 3rd. This represents a c) dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend is Friday, August 21st. This is a 10.0% increase from Cummins’s previous quarterly dividend of $2.00.

Cummins has increased its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 19 consecutive years. Cummins has a payout ratio of 33.4% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Cummins to earn $34.02 per share next year, which means the company should continue to be able to cover its $8.00 annual dividend with an expected future payout ratio of 23.5%.

Cummins Price Performance

Shares of CMI opened at $663.64 on Tuesday. The company has a current ratio of 1.71, a quick ratio of 1.11 and a debt-to-equity ratio of 0.50. The company’s fifty day simple moving average is $679.36 and its 200 day simple moving average is $611.01. Cummins has a 1-year low of $335.48 and a 1-year high of $737.76. The company has a market cap of $91.58 billion, a price-to-earnings ratio of 34.44, a PEG ratio of 1.65 and a beta of 1.22.

Cummins (NYSE:CMI) last announced its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 EPS for the quarter, beating analysts’ consensus estimates of $5.63 by $0.52. The firm had revenue of $8.40 billion during the quarter, compared to analysts’ expectations of $8.37 billion. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The company’s revenue for the quarter was up 2.7% compared to the same quarter last year. During the same quarter last year, the company posted $5.96 earnings per share. On average, research analysts forecast that Cummins will post 29.32 earnings per share for the current fiscal year.

Cummins Company Profile

Cummins Inc (NYSE: CMI) is a global power technology company that designs, manufactures, distributes and services a broad portfolio of diesel and natural gas engines, electrified powertrains, power generation systems and related components. Founded in 1919 and headquartered in Columbus, Indiana, Cummins has grown into one of the world’s leading suppliers of internal combustion engines and a provider of technologies that reduce emissions and improve fuel efficiency.

The company’s product lineup includes heavy-, medium- and light-duty engines for on-highway and off-highway applications, generator sets and power systems for commercial and industrial use, and key engine components such as turbochargers, fuel systems, air handling, filtration and aftertreatment solutions.