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Cummins (CMI) Declares Hike in Quarterly Stock Dividend

Cummins Inc. CMI announced that its board has approved an increase in its quarterly cash dividend on common stock to $1.08 per share from the earlier payout of $1.025 per share. The revised dividend will be paid on Sep 1 to shareholders of record as of Aug 18, 2017.

According to Tom Linebarger, chairman and CEO, Cummins, the company will maintain its strong returns by progressing with investments and offering products and services to customers.

Cummins is focused on enhancing shareholder value by pursuing aggressive share repurchases and increasing dividend payouts. In the first quarter of 2017, it returned $222 million to shareholders in the form of share buybacks and dividends. Prior to this, in 2016 the company had returned 75% of its full-year operating cash flow to shareholders in the form of share buybacks and dividends.

In 2017, Cummins plans to return 50% of its full-year operating cash flow to shareholders in the form of share repurchases and dividends.

Cummins is a leading global designer, manufacturer and distributor of diesel and natural gas engines, electric power generation systems, engine-related components, fuel systems, controls and air handling systems.

Headquartered in Columbus, IN, the company serves customers through a network of 600 company-owned and independent distributor facilities plus over 7,400 dealer locations.

Price Performance

Cummins has outperformed the Zacks categorized Auto-Tires-Trucks market in the last three months. The company’s share price increased 12.1% over this period compared with the industry’s 4.9% gain.

Zacks Rank & Key Picks

Currently, Cummins carries a Zacks Rank #3 (Hold).

Cummins Inc. Price and Consensus

Cummins Inc. Price and Consensus | Cummins Inc. Quote

Some better-ranked stocks in the auto space are Allison Transmission Holdings Inc. ALSN, Volkswagen AG VLKAY and Daimler AG DDAIF. All three sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Expected long-term growth rate for Allison Transmission Holdings, Volkswagen and Daimler are 11%, 17.5% and 2.8%, respectively.

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