Cummins Inc. (CMI - Free Report) has announced that its board approved an increase in its quarterly cash dividend on common stock to $1.14 per share. The revised dividend will be paid on Sep 4 to shareholders of record as of Aug 22, 2018.
The dividend has been hiked roughly 5.6% from $1.08 per share, which was offered in the previous four quarters. Prior to this, in July 2017, the company raised its dividend payout by 5.4% from $1.025 per common share.
Per the CEO, the company will maintain its strong returns by offering products and services to customers. Also, the dividend hike is in sync with Cummins’ commitment to provide increased returns to shareholders, which reflects the company’s confidence in its long-term performance.
Cummins Inc. Price and Consensus
In 2017, Cummins returned 50% of its full-year operating cash flow to shareholders in the form of share repurchases and dividends. Further, the company aims to achieve the same target in 2018 as well.
Headquartered in Columbus, IN, the company is a leading designer, manufacturer, and seller of diesel and natural gas engines, electric power generation systems, and engine-related components. The company serves its customers through a network of 500 company-owned and independent distributor facilities along with more than 7,500 dealer locations.
In the past three months, Cummins’ stock has decreased 17.1%, underperforming 3.6% decline recorded by the Auto sector it belongs to.
Zacks Rank & Stocks to Consider
Currently, Cummins has a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Visteon Corporation (VC - Free Report) , Magna International Inc. (MGA - Free Report) and Fox Factory Holding Corporation (FOXF - Free Report) . Visteon sports a Zacks Rank #1 (Strong Buy) while Magna International and Fox Factory carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Visteon has an expected long-term growth rate of 15%. Shares of the company have gained 26.4% over the past year.
Magna International has an expected long-term growth rate of 8.5%. Shares of the company have risen 22.8% over the past year.
Fox Factory has an expected long-term growth rate of 12.5%. Shares of the company have jumped 44.1% over the past year.
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