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

Key Points

• Cummins Inc. declared a quarterly dividend of $2.00 per share, which will be paid to investors of record on November 21st, with an ex-dividend date of the same day.
• The company's payout ratio stands at 30.4%, indicating that its dividend is well-supported by earnings, with expected earnings of $27.63 per share for next year.
• Cummins reported a net margin of 8.72% for the last quarter, with earnings per share (EPS) of $6.43, exceeding analysts' estimates of $5.21.

Cummins Inc. (NYSE:CMI - Get Free Report) declared a quarterly dividend on Tuesday, October 14th. Investors of record on Friday, November 21st will be paid a dividend of 2.00 per share on Thursday, December 4th. This represents a c) dividend on an annualized basis and a yield of 1.9%. The ex-dividend date is Friday, November 21st.

Cummins has a payout ratio of 30.4% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Cummins to earn $27.63 per share next year, which means the company should continue to be able to cover its $7.28 annual dividend with an expected future payout ratio of 26.3%.

Cummins Stock Performance

Shares of Cummins stock opened at $417.31 on Wednesday. The stock has a market capitalization of $57.50 billion, a price-to-earnings ratio of 19.62, a price-to-earnings-growth ratio of 1.97 and a beta of 1.04. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.64 and a quick ratio of 1.03. The business has a 50-day moving average of $409.04 and a 200 day moving average of $350.83. Cummins has a 12 month low of $260.02 and a 12 month high of $440.51.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The company reported $6.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.21 by $1.22. The business had revenue of $8.64 billion for the quarter, compared to analysts' expectations of $8.45 billion. Cummins had a net margin of 8.72% and a return on equity of 26.96%. The business's quarterly revenue was down 1.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $5.26 earnings per share. As a group, sell-side analysts forecast that Cummins will post 22.54 earnings per share for the current year.

About Cummins

Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers 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; and offers parts and services, as well as remanufactured parts and engines.

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