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Cummins sets $1.82 per share quarterly dividend

Published 16-10-2024, 01:56 am
CMI
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COLUMBUS, Ind. - Cummins Inc . (NYSE: NYSE:CMI), a global power leader, has announced a quarterly cash dividend of $1.82 per share on its common stock. This dividend is payable on December 5, 2024, to shareholders who are on record as of November 22, 2024.

Cummins, which operates in multiple segments including engine and power systems, has a history dating back to 1919 and is known for its broad portfolio of power solutions. The company's commitment to innovation and sustainability is evident in its Destination Zero strategy, which focuses on helping customers transition to cleaner energy sources. Cummins' product range spans from diesel and natural gas engines to electric and hybrid powertrains, as well as components like turbochargers and fuel systems.

In 2023, the Indiana-based company, which employs approximately 75,500 people worldwide, reported sales of $34.1 billion and a net income of about $735 million. Cummins attributes its success to a robust manufacturing and service network, technological expertise, and a skilled workforce dedicated to powering a more prosperous world.

The forward-looking statements in the company's press release include expectations for revenue and EBITDA, as well as the outcomes of regulatory proceedings and emissions certification processes. However, these projections are subject to various risks and uncertainties, including changes in environmental legislation, trade policies, raw material costs, and the competitive landscape, among others.

Shareholders and potential investors are advised to consider these factors, which are detailed in the company's SEC filings, including its 2023 Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Cummins cautions against placing undue reliance on forward-looking statements, which are valid only as of the date of the press release.

This dividend announcement is based on a press release statement from Cummins Inc. and provides shareholders with the latest information on the company's financial distribution plans.

In other recent news, Cummins Inc. has reported strong Q2 results for 2024, with sales reaching $8.8 billion, marking a 2% increase from the previous year, and EBITDA rising to $1.35 billion, representing 15.3% of sales. Following these results, Baird raised its price target for Cummins shares to $330, while Citi reaffirmed its Buy rating on the stock and further increased the price target to $375. These decisions reflect updated earnings per share estimates for the upcoming years, with the 2024 EPS estimate revised upward to $19.65 and the 2026 EPS set at $26.40.

Cummins has also formed strategic partnerships with Isuzu Motors and Daimler (OTC:MBGAF) Trucks and buses, and received a $75 million grant from the Department of Energy. The company returned value to shareholders, increasing its quarterly dividend by 8.3% and repurchasing $230 million in shares. Despite an expected softening North American heavy-duty truck market in the latter half of the year, Cummins raised its full-year 2024 revenue outlook to down 3% to flat and EBITDA to 15% to 15.5%.

These recent developments underline Cummins' positive prospects through 2025, as confirmed by Citi's analysts following a visit to the company's facilities. The firm's confidence in Cummins is based on several factors including growth in Power Systems and Power Generation, stable demand in North America's medium-duty segment, and a rebound in China.

InvestingPro Insights

Cummins Inc.'s recent dividend announcement aligns with its strong track record of shareholder returns. According to InvestingPro data, the company boasts an impressive dividend yield of 2.15% and has demonstrated robust dividend growth of 15.92% over the last twelve months as of Q2 2024. This commitment to shareholder value is further underscored by an InvestingPro Tip, which reveals that Cummins has raised its dividend for 18 consecutive years.

The company's financial health appears solid, with revenue reaching $34.17 billion in the last twelve months as of Q2 2024, representing a growth of 6.15%. This performance is complemented by a healthy operating income margin of 9.98% for the same period, indicating efficient operations despite challenges in the global economy.

Investors may find Cummins' stock particularly attractive given its recent market performance. The company has seen a strong return of 52.47% over the past year, and is currently trading near its 52-week high, with its price at 98.47% of the peak. This positive momentum is reflected in another InvestingPro Tip, which notes that Cummins is a prominent player in the Machinery industry.

For those interested in a deeper analysis, InvestingPro offers 13 additional tips on Cummins, providing a comprehensive view of the company's financial position and market outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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