Diesel engine maker Cummins Inc. said its board agreed to raise the company’s quarterly cash dividend by 25 cents per share, from 18 cents per share, a 39% increase.
The dividend will be payable Aug. 31 to shareholders of record as of Aug. 17.
“After three consecutive years of record financial results, the company continues to perform extremely well,” said Tim Solso, Cummins’ Chairman and Chief Executive Officer. “Today’s actions are indicative of the board’s continued confidence in the company’s ability to grow profitably and generate strong cash flow.”
The dividend increase is the second for Cummins in the past year. It also increased its dividend by 20% last July, and the current boost comes four months after Cummins announced a 2-for-1 stock split.
On a split-adjusted basis, Cummins said its stock has nearly doubled in 2007.