Cummins Raises Quarterly Dividend 10% to $2.20

Cummins Inc. (NYSE: CMI) increased its quarterly dividend by 10% to $2.20 per share from $2.00, extending the industrial company’s dividend-growth streak to 20 consecutive years.

The new rate equates to an annual dividend of $8.80 per share. Based on a share price of $587.68, the forward annual yield is 1.5%. The ex-dividend date was Aug. 21, 2026, meaning investors who purchased the stock on or after that date were not entitled to the associated quarterly distribution.

The increase continues a long period of dividend expansion following Cummins’ previous cut in 2003. The company’s dividend safety score stands at 91 out of 100, corresponding to an A grade.

Cummins announced the increase against a supportive operating backdrop. The company’s second-quarter update reported stronger results and a higher full-year outlook, with management citing strength across several markets. Its regulatory filing also showed improved operating cash generation during the first half of the year and said the company continued investing in new product lines and targeted capacity expansion. Cummins’ second-quarter results and its quarterly SEC filing provide the latest financial context.

The Columbus, Indiana-based company supplies engines, components, distribution services, power-generation systems and lower-emissions technologies. Its portfolio spans diesel, electric and hybrid powertrains as well as equipment used in data centers and other power-generation markets. Cummins has said robust demand for data-center backup power supported its Power Systems and Distribution businesses, helping offset weakness in parts of the North American truck market. The company’s full-year results also reiterated its long-term focus on returning cash to shareholders while funding future growth.

What it means for income investors

The increase raises annual dividend income by $0.80 per share at the new quarterly rate. The 1.5% forward yield remains modest relative to higher-yielding equities, but the 20-year growth record and A safety grade indicate that consistency and dividend growth—rather than current yield alone—are the central features of Cummins’ income profile. Future dividends remain subject to board approval and the company’s earnings and liquidity.