Cummins Inc. (NYSE:CMI) to Issue Dividend Increase - $2.20 Per Share

Key Points

• Cummins Inc. announced a quarterly dividend of $2.20 per share, up 10% from the prior $2.00 payment. The dividend will be paid on September 3 to shareholders of record on August 21.
• The new payout implies an annualized dividend of $8.00 per share and a yield of about 1.3%. Cummins has raised its dividend for 19 straight years, and its payout ratio remains manageable at 33.4%.
• The company also reported strong recent results, with Q1 EPS of $6.15 beating expectations and revenue of $8.40 billion slightly above estimates. Analysts expect Cummins to earn $29.32 per share for the current fiscal year.

Cummins Inc. (NYSE:CMI - Get Free Report) declared a quarterly dividend on Monday, July 13th. Investors 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 yield of 1.3%. 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 increased its dividend payment by an average of 0.1%annually over the last three years and has increased its dividend annually for the last 19 consecutive years. Cummins has a dividend payout ratio of 33.4% meaning its dividend is sufficiently covered by earnings. Equities research 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 Trading Down 1.8%

Shares of NYSE:CMI opened at $663.64 on Tuesday. Cummins has a 12-month low of $335.48 and a 12-month high of $737.76. The business's fifty day simple moving average is $679.36 and its 200-day simple moving average is $611.01. The company has a market capitalization of $91.58 billion, a PE ratio of 34.44, a P/E/G ratio of 1.65 and a beta of 1.22. The company has a current ratio of 1.71, a quick ratio of 1.11 and a debt-to-equity ratio of 0.50.

Cummins (NYSE:CMI - Get Free Report) last issued its quarterly earnings data 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 return on equity of 25.25% and a net margin of 7.89%.The firm had revenue of $8.40 billion during the quarter, compared to analysts' expectations of $8.37 billion. During the same period in the prior year, the business posted $5.96 EPS. The firm's quarterly revenue was up 2.7% on a year-over-year basis. As a group, equities research analysts predict 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.