Cummins (CMI) Declares $1.57 Dividend

Cummins said on May 9, 2023 that its board of directors declared a regular quarterly dividend of $1.57 per share ($6.28 annualized). Previously, the company paid $1.57 per share.

Shares must be purchased before the ex-div date of May 18, 2023 to qualify for the dividend. Shareholders of record as of May 19, 2023 will receive the payment on June 1, 2023.

At the current share price of $215.55 / share, the stock's dividend yield is 2.91%.

Looking back five years and taking a sample every week, the average dividend yield has been 2.81%, the lowest has been 1.96%, and the highest has been 5.10%. The standard deviation of yields is 0.42 (n=237).

The current dividend yield is 0.24 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 0.35. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.20%, demonstrating that it has increased its dividend over time.

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What is the Fund Sentiment?

There are 2232 funds or institutions reporting positions in Cummins. This is an increase of 66 owner(s) or 3.05% in the last quarter. Average portfolio weight of all funds dedicated to CMI is 0.32%, a decrease of 1.56%. Total shares owned by institutions increased in the last three months by 1.06% to 136,677K shares. The put/call ratio of CMI is 0.71, indicating a bullish outlook.

Analyst Price Forecast Suggests 22.51% Upside

As of May 11, 2023, the average one-year price target for Cummins is 264.06. The forecasts range from a low of 218.16 to a high of $319.10. The average price target represents an increase of 22.51% from its latest reported closing price of 215.55.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Cummins is 30,387MM, an increase of 0.81%. The projected annual non-GAAP EPS is 19.95.

What are Other Shareholders Doing?

Price T Rowe Associates holds 5,507K shares representing 3.89% ownership of the company. In it's prior filing, the firm reported owning 5,240K shares, representing an increase of 4.84%. The firm increased its portfolio allocation in CMI by 22.77% over the last quarter.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 4,285K shares representing 3.03% ownership of the company. In it's prior filing, the firm reported owning 4,204K shares, representing an increase of 1.88%. The firm increased its portfolio allocation in CMI by 12.06% over the last quarter.

VFINX - Vanguard 500 Index Fund Investor Shares holds 3,260K shares representing 2.30% ownership of the company. In it's prior filing, the firm reported owning 3,196K shares, representing an increase of 1.96%. The firm increased its portfolio allocation in CMI by 11.88% over the last quarter.

Charles Schwab Investment Management holds 3,027K shares representing 2.14% ownership of the company. In it's prior filing, the firm reported owning 2,739K shares, representing an increase of 9.51%. The firm increased its portfolio allocation in CMI by 18.39% over the last quarter.

Geode Capital Management holds 2,940K shares representing 2.08% ownership of the company. In it's prior filing, the firm reported owning 2,869K shares, representing an increase of 2.38%. The firm increased its portfolio allocation in CMI by 12.76% over the last quarter.

Cummins Background Information
(This description is provided by the company.)

Cummins Inc., a global power leader, is a corporation of complementary business segments that design, manufacture, distribute and service a broad portfolio of power solutions. The company's products range from diesel, natural gas, electric and hybrid powertrains and powertrain-related components including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, automated transmissions, electric power generation systems, batteries, electrified power systems, hydrogen generation and fuel cell products. Headquartered in Columbus, Indiana (U.S.), since its founding in 1919, Cummins employs approximately 57,825 people committed to powering a more prosperous world through three global corporate responsibility priorities critical to healthy communities: education, environment and equality of opportunity. Cummins serves its customers online, through a network of company-owned and independent distributor locations, and through thousands of dealer locations worldwide and earned about $1.8 billion on sales of $19.8 billion in 2020.

This story originally appeared on Fintel.