#3 - Cummins (NYSE:CMI)
Cummins, Inc. (NYSE: CMI) is another manufacturing stock that continues to reward long-term investors. CMI stock is up over 73% in the last five years. Much of the revenue that fuels this growth comes from the company’s signature diesel and natural gas engines. As the need for infrastructure projects will remain strong, Cummins core business has a long runway.
However, there’s a larger story emerging for Cummins. That has to do with the company’s transition into renewable energy. The company is diving into areas like hydrogen fuel cells and battery storage. As of the first quarter 2023, this sector only makes up about 14% of the company’s total revenue. But you can imagine that this sector will continue to grow as demand for new energy sources continues to grow.
In addition to the strong return on CMI stock, shareholders are being rewarded with a solid dividend. Cummins has increased its dividend in each of the last 20 consecutive years. The yield of 2.71% isn’t eye-popping, but it does come with a current annual payout of $6.28.
About Cummins
Cummins Inc designs, manufactures, distributes, and services diesel and natural gas engines, electric and hybrid powertrains, and related components worldwide. It operates through five segments: Engine, Distribution, Components, Power Systems, and Accelera. The company offers diesel and natural gas-powered engines under the Cummins and other customer brands for the heavy and medium-duty truck, bus, recreational vehicle, light-duty automotive, construction, mining, marine, rail, oil and gas, defense, and agricultural markets; and offers parts and services, as well as remanufactured parts and engines.
Read More - Current Price
- $369.13
- Consensus Rating
- Hold
- Ratings Breakdown
- 5 Buy Ratings, 6 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $337.67 (8.5% Downside)
