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Cummins Inc

Exchange: NYSESector: IndustrialsIndustry: Specialty Industrial Machinery

Cummins Inc., a global power leader, is committed to powering a more prosperous world. Since 1919, we have delivered innovative solutions that move people, goods and economies forward. Our five business segments-Engine, Components, Distribution, Power Systems and Accelera™ by Cummins-offer a broad portfolio, including advanced diesel, alternative fuel, electric and hybrid powertrains; integrated power generation systems; critical components such as aftertreatment, turbochargers, fuel systems, controls, transmissions, axles and brakes; and zero-emissions technologies like battery and electric powertrain systems and electrolyzers. With a global footprint, deep technical expertise and an extensive service network, we deliver dependable, cutting-edge solutions tailored to our customers' needs, supporting them through the energy transition with our Destination Zero strategy. We create value for customers, investors and employees and strengthen communities through our corporate responsibility global priorities: education, equity and environment. Headquartered in Columbus, Indiana, Cummins employs approximately 70,000 people worldwide and earned $3.9 billion on $34.1 billion in sales in 2024. About Centralia Coal Transition Funding Boards Weatherization Board ($10M): established to fund energy efficiency and weatherization for the residents, employees, business, non-profit organizations and local governments within Lewis County and South Thurston County; up to $1 million shall be allocated to fund residential energy efficiency and weatherization measures for low-income and moderate-income residents of Lewis County and South Thurston County; Economic & Community Development Board ($20M): established to fund education, retraining, economic development, and community enhancement; at least $5M shall be allocated to fund education, retraining and economic development specifically targeting the needs of workers displaced from the Centralia facility; Energy Technology Board ($25M): established to fund energy technologies with the potential to create environmental benefits to the state of Washington.

Did you know?

Earnings per share grew at a 3.9% CAGR.

Current Price

$657.44

-2.02%

GoodMoat Value

$331.20

49.6% overvalued
Profile
Valuation (TTM)
Market Cap$90.75B
P/E31.92
EV$79.62B
P/B7.35
Shares Out138.04M
P/Sales2.70
Revenue$33.67B
EV/EBITDA17.92

Cummins Inc (CMI) Dividends

GoodMoat Analysis

Based on data as of March 26, 2026

Cummins' dividend profile is a mixed picture for an income-focused value investor. The dividend appears sustainable based on a moderate payout ratio and a strong balance sheet, but the current yield is below the sector average and dividend growth is constrained by low revenue growth and a modest free cash flow yield.

Read full analysis
Cummins Inc offers a dividend yield of 1.38%, which is below the broader industrial sector average, making it less attractive for pure yield-seeking investors. The dividend's sustainability is supported by a moderate payout ratio, estimated at approximately 35% of its $20.5 EPS, which provides a comfortable cushion. Furthermore, the company's balance sheet is a quality strength, with a Debt/Equity ratio of 0.61, aligning with the framework's preference for low debt (Debt/EBITDA < 1.0x). This financial stability underpins the dividend. However, the potential for dividend growth is limited. Revenue growth is minimal at 1.1% YoY, and the Free Cash Flow (FCF) yield of 3.1% is modest. While this FCF covers the dividend, it leaves a relatively thin buffer for significant increases without stronger top-line expansion or margin improvement. The company's high Return on Equity (23.0%) suggests it is effectively reinvesting retained earnings, but the current low-growth environment tempers the dividend's growth appeal. For a value investor, the dividend is secure but not a standout source of income or growth without an improvement in underlying business momentum. Analysis based on data as of 2024-05-15.

Dividend Overview

Dividend Yield

1.16%

Dividend / Share

$7.64

Key Metrics

Market Cap

$90.75B

P/E Ratio

31.92

Forward P/E

EPS

$20.50

PEG Ratio

0.81

Book Value

$89.46

Dividend Yield

1.16%

Profit Margin

8.44%

ROE

23.02%

Dividend History

Dividend Safety

CMI Dividend Analysis

Cummins Inc (CMI) dividend analysis including yield, payout history, and sustainability metrics. The current dividend yield is 1.16%. The annual dividend per share is $7.64.

P/E ratio: 31.92. Profit margin: 8.44%. Free cash flow: $2.39B. This page shows Cummins Inc's dividend overview, key metrics, historical payout data, and dividend safety assessment to help income-focused investors evaluate the sustainability of dividend payments.

GoodMoat's dividend analyzer evaluates payout ratios, earnings coverage, and free cash flow coverage to determine how well supported Cummins Inc's dividend payments are. Use this analysis alongside the company's financial statements and quality score to make informed income-investing decisions.