Cummins Inc. (NYSE:CMI) Plans Quarterly Dividend of $2.00

Cummins Inc. (NYSE:CMI) declared a quarterly dividend on Tuesday, May 12th. Shareholders of record on Friday, May 22nd will be paid a dividend of 2.00 per share on Thursday, June 4th. This represents a c) dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend is Friday, May 22nd.

Cummins has raised its dividend by an average of 0.1%per year over the last three years and has increased its dividend every year for the last 19 years. Cummins has a payout ratio of 33.4% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Cummins to earn $32.02 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 25.0%.

Cummins Stock Performance

Cummins stock traded up $8.52 during trading hours on Wednesday, reaching $713.08. 261,997 shares of the stock were exchanged, compared to its average volume of 913,189. The stock has a market cap of $98.40 billion, a P/E ratio of 37.00, a P/E/G ratio of 1.77 and a beta of 1.27. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.11 and a current ratio of 1.71. Cummins has a 52-week low of $307.90 and a 52-week high of $718.08. The firm’s 50 day moving average is $593.30 and its 200 day moving average is $549.49.

Cummins (NYSE:CMI) last posted its quarterly earnings results on Tuesday, May 5th. The company reported $6.15 earnings per share for the quarter, topping analysts’ consensus estimates of $5.63 by $0.52. Cummins had a net margin of 7.89% and a return on equity of 25.25%. The business had revenue of $8.40 billion for the quarter, compared to analysts’ expectations of $8.37 billion. During the same period in the prior year, the company posted $5.96 EPS. The business’s revenue for the quarter was up 2.7% on a year-over-year basis. Analysts predict that Cummins will post 28.39 EPS for the current fiscal year.

Cummins News Summary

Here are the key news stories impacting Cummins this week:

• Positive Sentiment: Cummins’ latest quarterly results topped expectations, with EPS of $6.15 versus $5.63 estimated and revenue of $8.40 billion slightly ahead of forecasts, reinforcing the case for continued operational strength.
• Positive Sentiment: Several analysts raised price targets or reiterated bullish ratings, including Citigroup’s increase to $770 and Barclays’ increase to $760, which supports the stock’s higher valuation. Article Title
• Positive Sentiment: The company also announced a quarterly dividend of $2.00 per share, signaling confidence in cash generation and supporting income-focused investors.
• Neutral Sentiment: Recent commentary highlighted Cummins as a momentum stock and pointed to broader growth themes in industrial power and electrification, but these pieces do not add a major new catalyst.
• Negative Sentiment: Multiple insiders sold shares over the last few days, including VPs Jennifer Mary Bush, Nathan Stoner and Marvin Boakye, plus EVP Bonnie Fetch and insider Brett Michael Merritt. While insider sales can be routine, the cluster of transactions may temper sentiment somewhat.

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.