Cummins Inc. (NYSE:CMI) Shares Set to Pay Quarterly Dividend of $2.20

Cummins Inc. (NYSE:CMI) announced a quarterly dividend on Tuesday, October 13th. Stockholders of record on Friday, November 20th will be paid a dividend of $2.20 per share on Thursday, December 3rd. This represents a $8.80 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend is Friday, November 20th.

Cummins has raised its dividend by an average of 0.1% annually over the last three years and has increased its dividend every year for the last 19 years. Cummins has a dividend payout ratio of 36.8% meaning its dividend is sufficiently covered by earnings. Research analysts expect Cummins to earn $35.05 per share next year, which means the company should continue to be able to cover its $8.80 annual dividend with an expected future payout ratio of 25.1%.

Cummins Trading Up 0.3%

Shares of NYSE CMI opened at $529.57 on Wednesday. Cummins has a 12-month low of $400.72 and a 12-month high of $737.76. The company has a market cap of $72.90 billion, a price-to-earnings ratio of 27.06, a price-to-earnings-growth ratio of 1.39 and a beta of 1.24. The company has a current ratio of 1.73, a quick ratio of 1.13 and a debt-to-equity ratio of 0.48. The stock’s 50 day simple moving average is $562.88 and its 200 day simple moving average is $620.45.

Cummins (NYSE:CMI) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $6.73 EPS for the quarter, missing analysts’ consensus estimates of $7.21 by ($0.48). Cummins had a return on equity of 25.29% and a net margin of 7.82%. The company had revenue of $9.46 billion for the quarter, compared to the consensus estimate of $9.33 billion. During the same quarter in the previous year, the company earned $6.43 earnings per share. Cummins’s quarterly revenue was up 9.4% compared to the same quarter last year. Equities research analysts expect that Cummins will post 30.10 EPS for the current year.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on CMI shares. Bank of America reduced their price target on shares of Cummins from $731.00 to $600.00 in a report on Thursday, September 24th. UBS Group lowered their price target on shares of Cummins from $835.00 to $741.00 and set a “buy” rating for the company in a research report on Wednesday, September 30th. CICC Research started coverage on shares of Cummins in a report on Sunday, August 23rd. They issued an “outperform” rating and a $781.00 price objective on the stock. Zacks Research downgraded shares of Cummins from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 13th. Finally, Citigroup reduced their target price on shares of Cummins from $790.00 to $630.00 and set a “buy” rating for the company in a research note on Monday. Thirteen analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, Cummins currently has an average rating of “Moderate Buy” and an average price target of $708.18.

About Cummins

Cummins Inc (NYSE: CMI) is a global power technology company headquartered in Columbus, Indiana. Founded in 1919, the company designs, manufactures, sells and services power solutions for commercial, industrial and infrastructure applications.

Its products include diesel and natural-gas engines, electrified powertrains, batteries, fuel cell systems, generators and other power-generation equipment. Cummins also produces components such as filtration systems, fuel systems, turbochargers and emission-control technologies.