Power company Cummins Inc. (CMI) announced that it has hiked its quarterly cash dividend by 7% to $1.45 per share from the previous dividend of $1.35 per share. The dividend will be paid on September 2, 2021 to shareholders of record as of August 20, 2021. The company designs, manufactures and distributes engines, filtration and power generation products.
Following the news, shares of the company appreciated marginally to close at $241.50 in Tuesday’s trading session. The annual dividend yield of the company now stands at 2.4% based on Tuesday’s closing price.
CEO of Cummins Tom Linebarger said, “This marks our 12th consecutive year of increasing our dividend, demonstrating a consistent trend of returning capital to shareholders while continuing to invest in our future.” (See Cummins stock chart on TipRanks)
On July 13, J.P. Morgan analyst Ann Duignan reiterated a Hold rating on the stock. The analyst, however, raised the price target from $277 to $305, which implies upside potential of 26.3% from current levels.
Consensus among analysts is a Hold based on 3 Buys and 9 Holds. The average Cummins price target of $289.80 implies upside potential of 20% from current levels.
Shares have gained 35.4% over the past year.
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