Here’s How You Can Earn $100 In Passive Income By Investing In Cummins Stock
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Cummins Inc. (NYSE:CMI) designs, manufactures, distributes and services diesel and natural gas engines, electric and hybrid power trains and related components worldwide.
It will report its Q4 2024 earnings on February 4. Wall Street analysts expect the company to post an EPS of $4.75, up from $4.14 in the year-ago period. According to data from Benzinga Pro, quarterly revenue is expected to be $8.10 billion, slightly down from $8.54 billion in the year-ago period.
The 52-week range of Cummins’ stock price was $226.53 to $387.90.
Cummins’ dividend yield is 2%. It paid $7.28 per share in dividends during the last 12 months.
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On Nov. 5, 2024, the company announced its Q3 2024 earnings, posting sales growth of 0.30% year-over-year to $8.546 billion, beating the consensus of $8.294 billion, as reported by Benzinga.
EPS for the quarter stood at $5.86 compared to $4.59 a year ago, beating the consensus of $4.78. Gross profit increased 4.8% year-over-year to $2.171 billion; the margin expanded slightly by 111 bps to 25.7%.
Cummins continues to expect 2024 revenue to be down 3% to flat. EBITDA is expected to be 15.5%, at the top end of the previous guidance of 15.0% to 15.5%. The company aims to sustain strong cash flow, targeting 50% returns to shareholders while focusing on growth, dividends and debt reduction.
Check out this article by Benzinga for insights from eight analysts on Cummins.
If you want to make $100 per month – $1,200 annually – from Cummins dividends, your investment value needs to be approximately $600,000, which is around 165 shares at $364.25 each.
Understanding the dividend yield calculations: When estimating, you need two key variables – the desired annual income ($1,200) and the dividend yield (2% in this case). So, $1,200 / 0.02 = $600,000 to generate an income of $100 per month.
You can calculate the dividend yield by dividing the annual dividend payments by the stock’s current price.
The dividend yield can change over time due to fluctuating stock prices and dividend payments on a rolling basis.
For instance, assume a stock that pays $2 as an annual dividend is priced at $50. Its dividend yield would be $2/$50 = 4%. If the stock price rises to $60, the dividend yield drops to 3.33% ($2/$60). A drop in stock price to $40 will have an inverse effect and increase the dividend yield to 5% ($2/$40).
In summary, income-focused investors may find Cummins stock an attractive option for making a steady income of $100 per month by owning 165 shares of stock. There may be more upside as investors benefit from the company’s consistent dividend hikes. Cummins has raised its dividend consecutively for the last 15 years.
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