Cummins (CMI) is a Top Dividend Stock Right Now: Should You Buy?

Company Overview - Cummins (CMI) is headquartered in Columbus and operates in the Auto-Tires-Trucks sector, with a price change of 35.68% year-to-date [3] - The company currently pays a dividend of $1.82 per share, resulting in a dividend yield of 2.24%, which is higher than the Automotive - Internal Combustion Engines industry's yield of 1.12% and the S&P 500's yield of 1.49% [3] Dividend Performance - Cummins' annualized dividend of $7.28 has increased by 12% from the previous year [4] - Over the past five years, the company has raised its dividend three times, achieving an average annual increase of 6.53% [4] - The current payout ratio is 35%, indicating that Cummins pays out 35% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - For the fiscal year 2024, the Zacks Consensus Estimate projects earnings of $19.77 per share, reflecting a 0.41% increase from the previous year [5] Investment Considerations - Cummins is viewed as a compelling investment opportunity due to its strong dividend profile and solid earnings growth potential [7] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [7]