Why NYSE:CMI is a Top Pick for Dividend Investors.

Discover CUMMINS INC (NYSE:CMI)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:CMI showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

Assessing Dividend Metrics for NYSE:CMI

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:CMI earns a 7 out of 10:

• Compared to an average industry Dividend Yield of 1.84, CMI pays a better dividend. On top of this CMI pays more dividend than 91.60% of the companies listed in the same industry.
• On average, the dividend of CMI grows each year by 7.48%, which is quite nice.
• CMI has paid a dividend for at least 10 years, which is a reliable track record.
• CMI has not decreased their dividend for at least 10 years, which is a reliable track record.
• 32.36% of the earnings are spent on dividend by CMI. This is a low number and sustainable payout ratio.

How do we evaluate the Health for NYSE:CMI?

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:CMI has achieved a 5 out of 10:

• CMI has an Altman-Z score of 3.32. This indicates that CMI is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.32, CMI is in the better half of the industry, outperforming 61.83% of the companies in the same industry.
• CMI has a debt to FCF ratio of 3.38. This is a good value and a sign of high solvency as CMI would need 3.38 years to pay back of all of its debts.
• CMI has a Debt to FCF ratio of 3.38. This is in the better half of the industry: CMI outperforms 68.70% of its industry peers.

Profitability Examination for NYSE:CMI

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:CMI, the assigned 7 is a significant indicator of profitability:

• The Return On Assets of CMI (8.71%) is better than 74.05% of its industry peers.
• The Return On Equity of CMI (26.24%) is better than 88.55% of its industry peers.
• With a decent Return On Invested Capital value of 11.30%, CMI is doing good in the industry, outperforming 73.28% of the companies in the same industry.
• The last Return On Invested Capital (11.30%) for CMI is above the 3 year average (9.47%), which is a sign of increasing profitability.
• The Profit Margin of CMI (8.40%) is better than 67.18% of its industry peers.
• In the last couple of years the Profit Margin of CMI has grown nicely.

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Our latest full fundamental report of CMI contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.