Cummins increases quarterly dividend by 10% to $2.00 per share

COLUMBUS, Ind. - Engine manufacturer Cummins Inc. (NYSE:CMI), currently trading at a modest P/E ratio of 16.9 with a market capitalization of $47 billion, announced Tuesday that its Board of Directors has approved a 10% increase in the company’s quarterly cash dividend from $1.82 to $2.00 per share.

The dividend will be payable on September 4, 2025, to shareholders of record as of August 22, 2025, according to a press release statement from the company.

This marks the 16th consecutive year that Cummins has raised its quarterly dividend to shareholders, highlighting the company’s consistent approach to returning value to investors.

Cummins, a global power solutions provider headquartered in Columbus, Indiana, operates through five business segments: Engine, Components, Distribution, Power Systems, and Accelera by Cummins. The company employs approximately 69,600 people worldwide and reported sales of $34.1 billion with earnings of about $3.9 billion in 2024.

The dividend increase comes as the company continues to implement its Destination Zero strategy, which focuses on sustainability and helping customers navigate the energy transition through its diverse portfolio of products ranging from advanced diesel and natural gas to electric and hybrid powertrains.

In other recent news, Cummins Inc. reported earnings of approximately $3.9 billion on sales of $34.1 billion in 2024. The company has also introduced a new turbocharger designed for hydrogen internal combustion engines, aimed at heavy-duty commercial applications in Europe. This development aligns with Cummins’ Destination Zero strategy, focusing on decarbonization initiatives. Analysts at Goldman Sachs upgraded Cummins’ stock rating from Neutral to Buy, raising the price target to $431, citing improved profitability in the Power Systems business. Additionally, Cummins’ shareholders approved the election of eleven directors and the company’s executive pay structure during the annual meeting. The proposal for an independent board chairman, however, did not pass. Cummins announced a quarterly cash dividend of $1.82 per share, payable on June 5, 2025, to shareholders on record as of May 23, 2025. Furthermore, Matthew Tsien, a veteran in the automotive industry, has been elected to the company’s Board of Directors, bringing extensive experience from his previous roles at General Motors.

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