Cummins (CMI) Could Be a Great Choice

Company Overview - Cummins (CMI) is headquartered in Columbus and operates in the Auto-Tires-Trucks sector, experiencing a price change of -5.13% this year [3] - The company currently pays a dividend of $1.82 per share, resulting in a dividend yield of 2.2$7.28 has increased by 4% from the previous year, with the company raising its dividend five times over the last five years, averaging an annual increase of 7.49% [4] - The current payout ratio for Cummins is 34%, indicating that the company distributes 34% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Cummins' earnings per share in 2025 is $22.54, reflecting a year-over-year growth rate of 5.47% [5] Investment Considerations - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [6] - While high-yielding stocks may face challenges during periods of rising interest rates, Cummins presents a compelling investment opportunity due to its strong dividend profile and a Zacks Rank of 3 (Hold) [7]