COLUMBUS, Ind. - Cummins Inc . (NYSE: NYSE:CMI), a global power leader, has announced an increase in its quarterly common stock cash dividend, marking a continued commitment to shareholder returns. The company's Board of Directors approved an 8.3% rise in the dividend from $1.68 to $1.82 per share. This increment is scheduled for payment on September 5, 2024, to shareholders of record as of August 23, 2024.
The increase underscores Cummins' consistent performance in enhancing shareholder value, with this being the 15th consecutive year the dividend has risen. The company's ability to sustain dividend growth reflects its strong financial position and confidence in its business operations.
Cummins, headquartered in Columbus, Indiana, operates through five business segments: Components, Engine, Distribution, Power Systems, and Accelera by Cummins. The company's global manufacturing, service, and support network, combined with a skilled workforce and extensive technological expertise, enable it to offer a broad portfolio of products. These include advanced diesel, natural gas, electric, and hybrid powertrains, and a variety of powertrain-related components.
In 2023, Cummins reported earnings of approximately $735 million on sales of $34.1 billion. The company attributes its success to its commitment to sustainability and innovation, particularly through its Destination Zero strategy, which aims to assist customers in the energy transition.
While Cummins has a forward-looking approach, the company also cautions that its future results could differ from projected outcomes due to various factors, including regulatory changes, market conditions, and global economic influences. These forward-looking statements are based on current expectations and are subject to risks and uncertainties.
In other recent news, Cummins Inc. has seen several significant developments. Citi initiated coverage on Cummins with a Buy rating, citing growth outlook and the company's strategic moves, including the acquisition of Meritor (NYSE:MTOR) in 2022. Cummins also reported a slight decrease in its first-quarter revenue to $8.4 billion, with a projected revenue decline of 2% to 5% for 2024.
Additionally, Cummins, in collaboration with Daimler (OTC:MBGAF) Trucks & Buses US Holding LLC and PACCAR (NASDAQ:PCAR), formed a joint venture named Amplify Cell Technologies. The venture aims to enhance zero-emissions technology and is set to commence production in a 21-gigawatt hour battery factory in 2027.
In terms of personnel changes, Cummins announced the retirement of its Senior Vice President, Tony Satterthwaite, set for September 2024. Accelera by Cummins also unveiled its latest decarbonizing technologies, including updated hydrogen fuel cell engines, a high-efficiency eAxle, and next-generation batteries.
Finally, Cummins announced its intent to raise long-term financial targets, building on the momentum from its strategic initiatives and ongoing commitments. These are the recent developments in the company's activities.
InvestingPro Insights
Cummins Inc. (NYSE: CMI) has recently made headlines with its dividend increase, demonstrating a strong commitment to shareholder returns. As investors consider the implications of this move, several key metrics and InvestingPro Tips can provide deeper insights into the company's financial health and market position.
InvestingPro Tips highlight Cummins as a company that has not only raised its dividend for 18 consecutive years but has also maintained dividend payments for an impressive 54 years. This long history of dividend reliability is a testament to the company's stable financial management and dedication to shareholder value. Additionally, analysts predict that the company will be profitable this year, which aligns with the company's confident approach to increasing its dividend.
From a data perspective, Cummins boasts a solid market capitalization of $36.79 billion, indicating a strong market presence. The company's P/E Ratio stands at 19.67, with an adjusted P/E Ratio for the last twelve months as of Q1 2024 at 15.21, suggesting a potentially favorable valuation relative to earnings. Moreover, the revenue growth over the last twelve months as of Q1 2024 is reported at 12.85%, underlining the company's ability to increase its earnings, which is crucial for sustaining and growing dividends.
For investors seeking more in-depth analysis and additional InvestingPro Tips, there are 9 tips available for Cummins on InvestingPro. These tips cover various aspects, including the company's low price volatility, moderate level of debt, and its status as a prominent player in the Machinery industry. To access these valuable insights, investors can visit https://www.investing.com/pro/CMI and use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, enriching their investment strategy with comprehensive data and expert analysis.
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