Dividend Coverage: This Engine Manufacturer Pays a Dividend of $4.32 on Annualized Basis; Will Trade Ex-Dividend on November 16, 2017
LONDON, UK / ACCESSWIRE / November 15, 2017 / Pro-Trader Daily takes a closer look at Cummins Inc. (NYSE: CMI) as the Company's stock will begin trading ex-dividend on November 16, 2017. In order to capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on November 15, 2017. Are you looking for research on dividend stocks, if so register with us now for your free membership at:
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Dividend Declared
On October 10, 2017, Cummins' Board of Directors declared a quarterly common stock cash dividend of 1.08 dollars per share, payable on December 01, 2017, to shareholders of record on November 17, 2017.
Cummins' indicated dividend represents a yield of 2.56%, which is more than double the average dividend yield of 1.19% for the Industrial Goods sector. The Company has raised dividend for seven consecutive years.
Dividend Insights
Cummins has a dividend payout ratio of 42.7%, which means that the Company spends approximately $0.43 for dividend distribution out of every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
According to analysts' estimates, Cummins is forecasted to report earnings of $11.56 for the next year, which is more than double the Company's annualized dividend of $4.32 per share.
As on October 01, 2017, Cummins' cash and cash equivalents totaled $1.29 billion compared to $1.12 billion as on December 31, 2016. For the nine months of 2017, the Company's net cash provided by operating activities totaled $1.47 billion compared to operating cash flow of $1.31 billion for the year-ago same period. The Company's strong financial position indicates its ability to absorb any fluctuations in earnings and cash flow and to sustain the dividend distribution for a long period.
Recent Development for Cummins
On October 23, 2017, Cummins announced the new C125N6 and C150N6 models in the QSL8.9G Series. The Cummins commercial generator set is a fully integrated power generation system providing optimum performance, reliability, and versatility for stationary standby power applications.
The Company noted that the gas powered 4-cycle Cummins QSJ8.9G spark-ignited engine delivers reliable power, while its electronic air/fuel ratio control provides optimum engine performance and fast response to load changes. Cummins stated that the Alternator has a starting capability, low reactance 2/3 pitch winding, low waveform distortion with non-linear loads, and fault clearing short-circuit capability. The control system is PowerCommand™ 2.3 as standard equipment and provides total generator set system integration, while the cooling system provides reliable operation at up to 50 degrees Celsius ambient temperature.
About Cummins
Cummins is a corporation of complementary business units that design, manufacture, distribute, and service diesel and natural gas engines and related technologies, including fuel systems, controls, air handling, filtration, emissions solutions and electrical power generation systems. Headquartered in Columbus, Indiana (USA), Cummins currently employs approximately 55,000 people worldwide and serves customers in approximately 190 countries and territories through a network of approximately 600 company-owned and independent distributor locations and more than 7,200 dealer locations. Cummins earned $1.4 billion on sales of $17 billion in 2016.
Stock Performance
Cummins' share price finished yesterday's trading session at $169.12, marginally sliding 0.05%. A total volume of 1.43 million shares have exchanged hands, which was higher than the 3-month average volume of 1.18 million shares. The Company's stock price surged 9.55% in the last three months, 10.31% in the past six months, and 25.52% in the previous twelve months. Additionally, the stock rallied 23.74% since the start of the year. Shares of the Company have a PE ratio of 17.18 and have a dividend yield of 2.55%. The stock currently has a market cap of $28.12 billion.
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