CMI - The Power Play: Cummins' Path To More Than 10% Annual Returns

2024-02-08 09:07:52 ET

Summary

• Cummins Inc. reported strong quarterly numbers with a 10% increase in revenues compared to the previous year.
• The company faced challenges due to regulatory claims and costs associated with retirement and separation, but still achieved growth in sales.
• Cummins provided guidance for 2024, anticipating a decline in revenue but a focus on maintaining profitability amid market challenges.

Introduction

I am knee-deep into industrial stocks, as more than 50% of my dividend growth portfolio consists of stocks from that sector. While more than half of this exposure consists of anti-cyclical defense contractor exposure, I own two cyclical machinery giants: Deere & Company ( DE ) and Caterpillar ( CAT ).

I often make the case that if I didn't own these, I would be a buyer of Cummins Inc. ( CMI ) , which is the star of this article.

Like Deere and Caterpillar, Cummins is a cyclical machinery producer with one major difference, which is its position in the supply chain....

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