Cummins announces 3% dividend increase in 2020

Cummins (CMI) will raise its quarterly dividend by 3 percent to $1.35 per share quarterly in 2020. This follows a 15.0 percent increase to $1.311 per share announced by the company in 2019. Last year the diesel engine maker announced a 15 percent dividend hike.

The next dividend is payable on December 3, 2020, to shareholders of record on November 20, 2020. A new annualized rate of $5.40 per share yields 2.4% at a stock price of $221.

Year-to-date Cummins stock has gained 24.3 percent, resulting in a current market cap of almost $33 billion for the company. Cummins will pay an estimated annual dividend of almost $800 million. Cummins has now raised its dividend 15 consecutive years.

Cummins Inc., is a manufacturer of power solutions. The company designs, manufactures, distributes and services diesel and natural gas engines and powertrain-related component products, including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, transmissions, electric power generation systems, batteries and electrified power systems. Cummins sells its products to original equipment manufacturers (OEMs), distributors, dealers and other customers worldwide. Cummins, headquartered in Columbus, Indiana, was founded in 1919 as Cummins Engine Company and was first traded publicly in 1947.