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Cummins Inc. (CMI) logo

Cummins Inc.

S&P 500
CMI|Industrials|Specialty Industrial Machinery|$679.55|P/E 35.2|MCap 93.8B|NYSE

Last update: May 9, 2026 at 09:32

Dividend Safety Rating

84/ 100Very Safe

CMI's dividend appears very safe. Strengths include a 40.6% earnings payout ratio & 44.2% fcf payout ratio. Areas of concern: Volatile profit margin stability. The dividend has been growing at a 7.66% 5-year CAGR.

Based on 15 of 15 metrics

Strengths

  • Earnings Payout Ratio: 40.6%Low earnings payout ratio leaves room to grow the dividend.
  • CFO Payout Ratio: 29.4%Operating cash flow strongly supports the payout.
  • Interest Coverage: 13.0xEarnings cover interest payments many times over.

Risks

  • Profit Margin Stability: VolatileProfit margins have been volatile.

Payout & Coverage

Very Safe
Earnings Payout Ratio
40.6%Very Safe
FCF Payout Ratio
44.2%Safe
CFO Payout Ratio
29.4%Very Safe
Interest Coverage
13.0xVery Safe

Balance Sheet

Safe
Net Debt / Total Assets
15.5%Safe
Current Ratio
1.7xSafe
Debt-to-Equity
61.6Very Safe

Profitability

Caution
Return on Equity
22.0%Very Safe
Operating Margin
9.8%Caution
Gross Margin
26.7%Caution
Profit Margin Stability
VolatileWarning

Dividend Track Record

Very Safe
Dividend Streak
11+ yrsVery Safe
Dividend Cut
NoneVery Safe
5-Year Dividend CAGR
7.7%Safe
Earnings Stability
GrowingVery Safe

About Cummins Inc.

Cummins Inc. is a global power solutions leader that designs, manufactures, and distributes advanced power generation and propulsion technologies across multiple industries worldwide. The company operates five primary business segments: Engine, which produces diesel, natural gas, hybrid, electric, and fuel cell engines for heavy- and medium-duty commercial trucks, off-highway equipment, and locomotives; Components, offering filtration products, transmissions, turbochargers, aftertreatment systems, and fuel systems; Distribution, which supplies parts and services through an extensive network of distributors and dealers; Power Systems, providing backup power generation and prime power solutions; and Accelera by Cummins, focused on emerging alternative energy technologies. Cummins serves customers across construction, mining, transportation, and data center sectors, with operations spanning approximately 190 countries. The company maintains a unique market position by competing alongside some of its largest customers while supplying critical powertrain solutions. Headquartered in Indianapolis, Indiana, and founded in 1919, Cummins is committed to its Destination Zero sustainability strategy, helping customers navigate the energy transition while reducing environmental impact.

Dividend Overview

Dividend Yield

1.15%

Annual Dividend

$7.82

Frequency

Quarterly

Payout Ratio

40.62%

FCF Payout Ratio

44.22%

Stock Price

$679.55

52-Week Range

$300.93 $718.08

Dividend History (2016–2025)

CMI annual dividend per share and yield history

Earnings & Profitability

CMI earnings per share and net profit margin

Key Dates

Last Ex-Dividend Date

February 20, 2026

Last Payment Date

March 5, 2026

Dividend Growth

3-Year Dividend CAGR

8.15%

5-Year Dividend CAGR

7.66%

10-Year Dividend CAGR

8.09%

3-Year Total Growth

26.49%

5-Year Total Growth

44.61%

10-Year Total Growth

117.66%

Income Calculator

CMI Dividend Calculator

Total Investment

$67,955.00

Annual Income

$782.00

Quarterly Income

$195.50

Monthly Income

$65.17

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Frequently Asked Questions

What is CMI's current dividend yield?
Cummins Inc. (CMI) currently has a dividend yield of 1.15%, based on a stock price of $679.55 and an annual dividend of $7.82.
When is CMI's next dividend payment date?
CMI's next ex-dividend date is 2026-02-20 and the next payment date is 2026-03-05. You must own the stock before the ex-dividend date to receive the upcoming payment.
How much does CMI pay in dividends per year?
Cummins Inc. paid $7.64 per share in annual dividends in 2025. The dividends are paid quarterly.
Has CMI been increasing its dividend?
Cummins Inc. has grown its dividend at a 5-year CAGR of 7.66% and a 10-year CAGR of 8.09%.
Is CMI's dividend safe?
Cummins Inc. has a payout ratio of 40.62%. Its free cash flow payout ratio is 44.22%. A payout ratio below 60% is generally considered sustainable.
How is CMI's Dividend Safety Rating calculated?
The Dividend Safety Rating evaluates Cummins Inc.'s dividend sustainability across four categories: Payout & Coverage (30%), Balance Sheet (20%), Profitability (20%), and Dividend Track Record (30%). Each metric is rated from "Very Safe" to "Danger" based on industry-standard thresholds, with sector-specific adjustments for industrials companies. The overall score ranges from 0 to 100.

Want to understand how we rate dividend safety? Read our full methodology

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This page is not investment advice. The content is for informational purposes only and should not be construed as a recommendation to buy, sell, or hold any security. Always do your own research and consult a qualified financial advisor before making investment decisions.

Financial data, including dividend history, earnings, balance sheet metrics, and the Dividend Safety Rating, is provided for informational purposes only. Data may be delayed or differ from official filings. Past performance does not guarantee future results. Always verify with official sources before making investment decisions.

Market data provided by Twelve Data.