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Cummins (CMI) announced today that it would increase its dividend to a quarterly $1.025 from the previous $0.957 payable on September 1 to shareholders of record as of August 22. That brings the foreword dividend yield to 3.45% from today’s closing price of $118.98. Last time I updated this Jubak Picks Dividend portfolio member back on November 11, 2015, the stock paid a dividend yield of 3.95%. The stock has been a member of that portfolio since October 12, 2015. The price appreciation since then is 6.32%.

Shares of Cummins have been stuck in a range between lows of $106.75 (June 27) to $108 (May 19) and highs of $117 (April 19) and $119 (today.)

In today’s ultra-low interest rate environment a yield of 3.45% a reasonably attractive. Of course, the yield would get more attractive if the stock were to pull back with the market during the current earnings season. (I think Cummins is certainly vulnerable to a strong dollar and slower growth in Europe. Watch for potentially disappointing guidance.)  Cummins shares moved above their 50-day moving average today. The company next reports earnings on August 2.