CMI - 10-12% Annual Returns? Why Cummins Could Be Your Next Dividend Champion

2024-06-09 23:23:52 ET

Summary

• Cummins has consistently achieved double-digit annual returns and dividend growth in a cyclical industry.
• Since January 2004, CMI shares have returned 17.6% annually, outperforming the S&P 500.
• Despite a decline in manufacturing demand, Cummins' shares have risen 11% since February 8, showcasing its resilience.

Introduction

Building a business is tough. Building a stock-listed company with consistent dividend growth and double-digit annual returns is even harder. Doing this in a cyclical industry takes things to a whole new level.

Essentially, there are three major machinery companies on my radar that have done this:

• Deere & Company ( DE ).
• Caterpillar ( CAT ).
• Cummins ( CMI ) , the star of this article.

For further details see: