Cummins (CMI) Declares $1.68 Dividend
Cummins said on February 13, 2024 that its board of directors declared a regular quarterly dividend of $1.68 per share ($6.72 annualized). Previously, the company paid $1.68 per share.
Shares must be purchased before the ex-div date of February 22, 2024 to qualify for the dividend. Shareholders of record as of February 23, 2024 will receive the payment on March 7, 2024.
At the current share price of $266.48 / share, the stock's dividend yield is 2.52%.
Looking back five years and taking a sample every week, the average dividend yield has been 2.75%, the lowest has been 1.96%, and the highest has been 5.10%. The standard deviation of yields is 0.39 (n=234).
The current dividend yield is 0.58 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 1.30. 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.
- Read the Ultimate Guide to Dividend Harvesting.
The company's 3-Year dividend growth rate is 0.24%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 2356 funds or institutions reporting positions in Cummins. This is an increase of 159 owner(s) or 7.24% in the last quarter. Average portfolio weight of all funds dedicated to CMI is 0.27%, a decrease of 8.16%. Total shares owned by institutions increased in the last three months by 2.12% to 134,128K shares. 
The put/call ratio of CMI is 0.92, indicating a bullish outlook.
Analyst Price Forecast Suggests 1.32% Downside
As of January 19, 2024, the average one-year price target for Cummins is 262.96. The forecasts range from a low of 218.16 to a high of $319.10. The average price target represents a decrease of 1.32% from its latest reported closing price of 266.48.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Cummins is 30,363MM, a decrease of 10.87%. The projected annual non-GAAP EPS is 19.49.
What are Other Shareholders Doing?
Price T Rowe Associates holds 7,344K shares representing 5.18% ownership of the company. In it's prior filing, the firm reported owning 7,098K shares, representing an increase of 3.35%. The firm decreased its portfolio allocation in CMI by 0.52% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 4,414K shares representing 3.11% ownership of the company. In it's prior filing, the firm reported owning 4,409K shares, representing an increase of 0.11%. The firm decreased its portfolio allocation in CMI by 3.17% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 3,404K shares representing 2.40% ownership of the company. In it's prior filing, the firm reported owning 3,371K shares, representing an increase of 0.97%. The firm decreased its portfolio allocation in CMI by 3.65% over the last quarter.
VIMSX - Vanguard Mid-Cap Index Fund Investor Shares holds 3,208K shares representing 2.26% ownership of the company. In it's prior filing, the firm reported owning 1,638K shares, representing an increase of 48.94%. The firm increased its portfolio allocation in CMI by 93.19% over the last quarter.
Geode Capital Management holds 3,169K shares representing 2.23% ownership of the company. In it's prior filing, the firm reported owning 3,071K shares, representing an increase of 3.10%. The firm decreased its portfolio allocation in CMI by 4.99% 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.
Additional reading:
- Cummins elects John H. Stone to its Board of Directors
- Form of Long-Term Grant Notice under the 2012 Omnibus Incentive Plan (filed herewith).
- Form of Restricted Stock Unit Award Agreement under the 2012 Omnibus Incentive Plan (filed herewith).
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