Cummins Inc. (NYSE:CMI) to Issue Quarterly Dividend of $1.45

Cummins Inc. (NYSE:CMI) announced a quarterly dividend on Tuesday, October 12th, RTT News reports. Shareholders of record on Friday, November 19th will be given a dividend of 1.45 per share on Thursday, December 2nd. This represents a $5.80 annualized dividend and a yield of 2.50%.

Cummins has raised its dividend by 25.5% over the last three years and has raised its dividend annually for the last 1 consecutive years. Cummins has a dividend payout ratio of 33.9% indicating that its dividend is sufficiently covered by earnings. Analysts expect Cummins to earn $19.02 per share next year, which means the company should continue to be able to cover its $5.50 annual dividend with an expected future payout ratio of 28.9%.

CMI stock opened at $231.54 on Thursday. The stock has a market capitalization of $33.25 billion, a P/E ratio of 15.55, a PEG ratio of 1.27 and a beta of 1.05. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.19 and a current ratio of 1.81. Cummins has a one year low of $212.80 and a one year high of $277.09. The company has a 50 day moving average price of $232.79 and a two-hundred day moving average price of $244.58.

Cummins (NYSE:CMI) last released its earnings results on Monday, August 2nd. The company reported $4.10 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $4.06 by $0.04. The firm had revenue of $6.10 billion during the quarter, compared to analysts’ expectations of $6 billion. Cummins had a net margin of 9.52% and a return on equity of 25.26%. Cummins’s revenue for the quarter was up 58.4% on a year-over-year basis. During the same period in the previous year, the company earned $1.86 EPS. Research analysts forecast that Cummins will post 16.37 earnings per share for the current fiscal year.

A number of analysts recently weighed in on CMI shares. Citigroup upped their price target on shares of Cummins from $280.00 to $300.00 and gave the stock a “buy” rating in a research report on Tuesday. Credit Suisse Group upped their target price on shares of Cummins from $300.00 to $307.00 and gave the company an “outperform” rating in a research note on Wednesday, August 4th. The Goldman Sachs Group lowered shares of Cummins from a “buy” rating to a “neutral” rating and dropped their price objective for the stock from $270.00 to $230.00 in a research note on Tuesday, August 24th. Zacks Investment Research lowered shares of Cummins from a “buy” rating to a “hold” rating and set a $251.00 price objective on the stock. in a research note on Thursday, July 15th. Finally, Vertical Research upgraded shares of Cummins from a “hold” rating to a “buy” rating and set a $280.00 price objective on the stock in a research note on Monday, July 26th. Six analysts have rated the stock with a hold rating and seven have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus target price of $283.00.

Cummins Company Profile

Cummins, Inc designs, manufactures and markets diesel and natural gas engines. It operates through the following segments: Engine, Distribution, Components, Power Systems, and New Power. The Engine segment manufactures and markets diesel and natural gas powered engines under the Cummins brand name, for the heavy- and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets.

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Dividend History for Cummins (NYSE:CMI)

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