Cummins Inc. (CMI) to Issue Quarterly Dividend of $2.20 on September 3rd

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 1.4%. The ex-dividend date is Friday, August 21st. This is a 10.0% increase from Cummins’s previous quarterly dividend of $2.00.

Cummins has raised its dividend payment by an average of 0.1%per year over the last three years and has increased its dividend annually for the last 19 consecutive years. Cummins has a dividend payout ratio of 36.8% meaning its dividend is sufficiently covered by earnings. Analysts expect Cummins to earn $34.72 per share next year, which means the company should continue to be able to cover its $8.80 annual dividend with an expected future payout ratio of 25.3%.

Cummins Trading Down 3.2%

Shares of CMI stock opened at $620.43 on Wednesday. The company has a current ratio of 1.73, a quick ratio of 1.13 and a debt-to-equity ratio of 0.48. Cummins has a 12-month low of $389.52 and a 12-month high of $737.76. The stock’s 50-day moving average price is $664.02 and its 200-day moving average price is $628.32. The stock has a market capitalization of $85.41 billion, a price-to-earnings ratio of 31.70, a price-to-earnings-growth ratio of 1.50 and a beta of 1.24.

Cummins (NYSE:CMI) last posted its earnings results on Tuesday, August 4th. The company reported $6.73 EPS for the quarter, missing analysts’ consensus estimates of $7.21 by ($0.48). Cummins had a net margin of 7.82% and a return on equity of 25.29%. The firm had revenue of $9.46 billion for the quarter, compared to the consensus estimate of $9.33 billion. During the same quarter in the prior year, the company posted $6.43 earnings per share. The firm’s revenue was up 9.4% compared to the same quarter last year. Equities research analysts predict that Cummins will post 30.06 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of research firms have commented on CMI. Raymond James Financial lifted their price objective on shares of Cummins from $675.00 to $745.00 and gave the company an “outperform” rating in a research note on Tuesday, May 26th. Argus raised their price objective on Cummins from $696.00 to $770.00 and gave the company a “buy” rating in a research note on Monday, June 1st. Morgan Stanley lifted their target price on shares of Cummins from $752.00 to $761.00 and gave the stock an “overweight” rating in a research report on Friday, July 17th. UBS Group dropped their price target on shares of Cummins from $850.00 to $835.00 and set a “buy” rating for the company in a research report on Wednesday, August 5th. Finally, Sanford C. Bernstein restated a “market perform” rating and issued a $700.00 price objective on shares of Cummins in a report on Wednesday, August 5th. Eleven equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $745.64.

About Cummins

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.