Cummins (NYSE:CMI) shares have declined since reaching their peak nearly a year ago and currently sit 28% off those highs. That's pushed the dividend yield up to around 3.0% and has lowered the valuation, while increasing the potential future returns.
Cummins is a leader in the design and manufacturing of diesel, natural gas, electric and hybrid power systems. It supplies the power systems for trains, heavy machinery, busses, heavy duty trucks and more. If it requires an engine, Cummins can supply it.
A lengthy dividend growth streak, while not foolproof, is one sign that the business is built to last as it's already weathered storms in the past while still growing its payout.
Cummins is a Dividend Contender with 16 consecutive years of dividend growth while paying the same or higher dividend every year dating back to 2000. Cummins did have a four-year hiatus in its dividend growth from 2002 through 2005, but dividend growth returned in earnest starting in 2006.