Cummins Inc.
CMI20 yrs growthIndustrials · Stock · quarterly payer
Forward Yield
1.57%
Annual Dividend
$8.80
Payout Ratio
41%
5-Yr Growth
7.7%
Ex-Date
Aug 21, 2026
Frequency
Quarterly
Summary
As of September 2026, Cummins Inc. (CMI) yields 1.57% ($8.80 per share annually), with a blended fair-value estimate of $445.95 — -20% downside, so it screens as overvalued. Dividend safety grade: A (92/100). 20 years of dividend growth.
Is CMI a good dividend stock?
YesCummins Inc. (CMI) pays a quarterly dividend yielding 1.57% ($8.80/yr), with 20 years of growth and a dividend-safety grade of A. It scores well across payout coverage, growth history and safety — a dependable income holding.
Advantages
- 20 consecutive years of dividend growth
- Comfortable payout ratio (41%)
- Strong 7.7% 5-yr dividend growth
- 150% total price return over 5 years
- Top-tier dividend safety score
Risks
- Cut its dividend in 2003
Key Data
- Dividend Yield
- 1.57%
- Payout Ratio
- 41%
- Annual Dividend
- $8.80
- 5-Yr Avg Growth
- 7.7%
- Ex-Dividend Date
- Aug 21, 2026
- Years of Growth
- 20
- Frequency
- quarterly
- Beta
- 1.23
- Market Cap
- $77.2B
- P/E Ratio
- 28.7
- 5-Yr Total Return
- 150%
- 52-Week Range
- $390.11 – $737.76
- Dividend Safety
- A · 92/100
- Ever Cut?
- Yes (2003)
Frequently Asked Questions
CMI Price — Last 12 Months
Daily close
Price Return
1 Year
+33%
3 Years
+145%
5 Years
+150%
52-Week Range
$390.11 – $737.76
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is CMI worth?
Overvaluedmedium confidenceOur blended fair-value estimate for Cummins Inc. is $445.95 per share, versus a market price of $560.75. That implies 20% of downside.
Fair Value
$445.95
Current Price
$560.75
Downside
-20%
Margin of Safety
-26%
How we get there
Discounted cash flow
Discounts projected free cash flow back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about 40.0% annual free-cash-flow growth. We model 20.0% — so the price already assumes faster growth than we think is likely.
Assumptions: 10.4% discount rate (CAPM), 20.0% stage-1 growth, 2.5% terminal growth, $19.57 EPS, $8.80 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
CMI Dividend Safety Score
Very Safe
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Aug 21, 2026 | — | $2.2000 | regular |
| May 22, 2026 | — | $2.0000 | regular |
| Feb 20, 2026 | — | $2.0000 | regular |
| Nov 21, 2025 | — | $2.0000 | regular |
| Aug 22, 2025 | — | $2.0000 | regular |
| May 23, 2025 | — | $1.8200 | regular |
| Feb 21, 2025 | — | $1.8200 | regular |
| Nov 22, 2024 | — | $1.8200 | regular |
| Aug 23, 2024 | — | $1.8200 | regular |
| May 23, 2024 | — | $1.6800 | regular |
| Feb 22, 2024 | — | $1.6800 | regular |
| Nov 22, 2023 | — | $1.6800 | regular |
| Aug 24, 2023 | — | $1.6800 | regular |
| May 18, 2023 | — | $1.5700 | regular |
Income Calculator
At $8.80 / yr per share
