The Cummins Inc. Board of Directors increased the company's quarterly cash dividend on common stock by 39 percent to 25 cents per share, up from 18 cents per share. The dividend is payable on August 31 to shareholders of record on August 17.
"After three consecutive years of record financial results, the company continues to perform extremely well," said Tim Solso, Cummins Chairman and Chief Executive Officer. "Today's actions are indicative of the Board's continued confidence in the company's ability to grow profitably and generate strong cash flow."
The dividend increase is the second for Cummins in the past year - the company increased its dividend 20 percent in July 2006 - and comes four months after the Company announced a 2-for-1 stock split. On a split-adjusted basis, Cummins stock has nearly doubled in 2007.