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Cummins: Sufficiently Cheap Despite Recession Fears

May 04, 2022 4:20 AM ETCummins Inc. (CMI)6 Comments
Passive Income Pursuit profile picture
Passive Income Pursuit


  • Cummins is a Dividend Contender with 16 consecutive years of dividend growth. Shares currently yield 2.98%.
  • Cummins has managed to do well throughout the cycle, increasing both peak and trough earnings.
  • Cummins' decline from the May 2021 high has opened up a buying opportunity.

Truck on the road, highway. Transports, logistics concept. 3d rendering

Дмитрий Ларичев/iStock via Getty Images

Cummins (NYSE:CMI) shares have declined since reaching their peak nearly a year ago and currently sit 28% off those highs. That's pushed the dividend yield up to around 3.0% and has lowered the valuation, while increasing the potential

Data by YCharts

CMI Analyst Day Segments

CMI Analyst Day Segments (CMI Analyst Day 2/23/22)

Cummins Dividend History

Cummins Dividend History (Cummins Investor Relations)

CMI Dividend Payout Ratios

CMI Dividend Payout Ratios (Cummins SEC filings)

CMI Revenue Profits and Cash Flow

CMI Revenue Profits and Cash Flow (CMI SEC filings)

CMI 5 Year Financial CAGR

CMI 5 Year Financial CAGR (CMI SEC filings)

CMI Margins

CMI Margins (CMI SEC filings)

CMI Free Cash Flow Returns

CMI Free Cash Flow Returns (CMI SEC Filings)

CMI Free Cash Flows

CMI Free Cash Flows (CMI SEC filings)

CMI Shares Outstanding

CMI Shares Outstanding (CMI SEC filings)

CMI Debt to Capitalization

CMI Debt to Capitalization (CMI SEC filings)

CMI Debt Ratios

CMI Debt Ratios (CMI SEC filings)

Data by YCharts

Cummins Dividend Yield Theory

Cummins Dividend Yield Theory (CMI Investor Relations and Yahoo Finance)

CMI Analyst Day Cycle

CMI Analyst Day Cycle (CMI Analysts Day 2/23/22)

CMI Analyst Day Targets

CMI Analyst Day Targets (CMI Analyst Day 2/23/22)

This article was written by

Passive Income Pursuit profile picture
I started a dividend growth investment strategy a few years ago and am aggressively growing my portfolio to churn out enough dividends to reach financial independence.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in CMI over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am not a financial professional. Please consult an investment advisor and do your own due diligence prior to investing. Investing involves risks. All thoughts/ideas presented in this article are the opinions of the author and should not be taken as investment advice.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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