Cummins dividend
Cummins pays a dividend that has risen for 17 consecutive years; the forecast's base case increases it from $9.18 per share to $10.48 by 2029. Cummins' cash coverage has varied: free cash flow was $279 million against $969 million of dividends in 2024, then reached $2,386 million in 2025.
How much does Cummins pay per share over the years shown?
Dividends rise from $9.18 per share in the base case to $10.48 by 2029. The bear holds at $8.80 through 2028 before reaching $9.24, while the bull reaches $11.30. The latest quarterly increase was 10%, and Cummins has raised its dividend for 17 consecutive years. Strong 2025 free cash flow supports continued growth, but the 2024 cash-flow shortfall argues against assuming uninterrupted increases.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Real free cash flow per share | 16.53 | 1.29 | 18.74 | 7.12 | 9.83 |
| − Dividends paid, per share | 7.61 | 6.97 | 6.45 | 6.01 | 5.54 |
| − Share buybacks, per share | 0.00 | 0.00 | 0.00 | 2.63 | 9.61 |
| = FCF not paid out, per share | 8.98 | 12.44 |
What this means. Real free cash flow is lower because it subtracts the value of shares given to employees as pay, which reduces each existing investor’s ownership.
Does Cummins' dividend fit its free cash flow?
The 2024 cash squeeze came from the emissions settlement. Cummins recorded the charge in 2023, when the obligation became measurable, but paid $1.9 billion in 2024 after the settlement became final. Free cash flow fell to $279 million while dividends remained $969 million. The timing matters: earnings can absorb a charge before the cash bill arrives.
Cash recovered in 2025. Free cash flow reached $2,386 million, acquisitions absorbed only $12 million, and net debt declined to $3,943 million as cash and short-term investments increased. Power-generation capacity has the strongest recent operating evidence: management said completed capacity was supporting growth and that customers wanted more equipment than suppliers could deliver. Hydrogen has the weakest evidence, because repeated write-downs preceded the retreat.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 2,386 | 279 | 2,753 | 1,046 | 1,470 |
| − Dividends paid | 1,055 | 969 | 921 | 855 | 809 |
| − Share buybacks | 0 | 0 | 0 | 374 | 1,402 |
| = Free cash flow not paid out | 1,245 | 1,775 | |||
| = Paid out more than the free cash flow | 761 | 221 | 769 | ||
| Paid out, % of free cash flow | 44.2% | 347.3% | 33.5% | 117.5% | 150.4% |
What this means. A blank in the cash-flow bridge does not mean zero; it means the report did not disclose enough detail to calculate that amount.
What could change Cummins' dividend?
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Normal operating profit | 5,000 (4,100 / 5,600) | 5,400 (4,000 / 6,200) | 5,800 (4,200 / 6,800) |
| Dividends per share | 9.18 (8.80 / 9.46) | 9.90 (8.80 / 10.34) | 10.48 (9.24 / 11.30) |
| Net debt | 1,954 (2,647 / 1,149) | 562 (1,990 / -605) | -1,653 (1,136 / -3,324) |
What this means. A negative net debt number means the company has more cash than debt, so it could repay all its borrowing and still have cash left.
What is Cummins' dividend yield today?
Cummins makes engines, power-generation equipment and components, then earns more by servicing them. At $531.33 a share, its stock says that stronger profits are coming—and that they must last.