Cummins

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

New Dividend: 50 cents quarterly (per share)

Dividend Percent Increase: 25%

Current Yield: 2.39%

Engine maker Cummins ( CMI) designs and builds the diesel and natural gas truck engines found in everything from higher-end Dodge Rams models to the big rigs on the highway.

The firm's dividend engine is also cranking this week. On Tuesday, management announced a 25% increase to the firm's quarterly payout, bringing it to 50 cents per share. That's a 2.39% yield at current price levels.

>>6 Dividend Stocks With Strong Payout Ratios

Cummins is an integrated engine supplier, building everything from turbochargers to the power units and filtration systems used on its engines in-house. That positioning gives CMI better control over its manufacturing process and over costs. The double-digit net margins the firm earned in the last year are a testament to that.

Of course, the dividend hike in Cummins wasn't a complete surprise; the firm was one of the 5 Industrial Stocks Poised for Bigger Dividends that I talked about at the start of June.

If you liked this article you might like

First Leg Down of United Tech; Hurricanes -- Jim Cramer's Top Thoughts

Tesla's New Semi Truck Ultimately Matters a Lot Less Than the Model 3

Cramer: Hurricanes Will Break the Decline of the Auto and Housing Industries

Look Out Tesla, Cummins Just Unveiled its New Electric Truck

Cummins Embarrasses Tesla by Unveiling This Monstrous New Electric Big Rig