Cummins (CMI) will raise its quarterly dividend by 7.4 percent to $1.45 per share in 2021. This comes after a dividend hike of 3 percent to $1.35 per share quarterly in 2020 and marks 16 consecutive years of dividend increases.

The next dividend is payable on September 2, 2021 to shareholders of record on August 20, 2021. A new annualized rate of $5.80 per share yields 2.5% at a stock price of $233.

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.