Cummins (CMI) will raise its quarterly dividend by 5.6 percent to $1.14 per share in 2018.

Last year CMI hiked its quarterly dividend from $1.025 to $1.08 per share. The dividend has now been raised for 13 consecutive years.

The new dividend is payable on September 4, 2018, to shareholders of record on August 22, 2018. Based on a stock price of $136.86 the new annual dividend of $4.56 yields 3.3%.

"The increase in our dividend reinforces our commitment to increasing returns to shareholders and reflects our confidence in our long term performance," said Tom Linebarger, Chairman and Chief Executive Officer. "We will continue to produce strong returns by providing outstanding products and support for our customers, investing in our future and executing our growth strategy."

Cummins Inc., is a manufacturer of power solutions. The company designs, manufactures, distributes and services diesel and natural gas engines and powertrain-related component products, including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, transmissions, electric power generation systems, batteries and electrified power systems. Cummins sells its products to original equipment manufacturers (OEMs), distributors, dealers and other customers worldwide. Cummins, headquartered in Columbus, Indiana, was founded in 1919 as Cummins Engine Company and was first traded publicly in 1947.