Historically, industrial dividend growth stocks such as engine maker Cummins (CMI) have done a great job of enriching long-term investors, especially if you’ve reinvested the dividends.
For example, Cummins has delivered an annualized total return of 15.4% since mid-1995, nearly doubling the S&P 500’s 8.5% annual total return.
However, Cummins has fallen on hard times in recent years while its share price has returned over 70% since early 2016, creating potential concerns for value-focused investors.
Let’s take a closer look under the hood of this venerable blue chip dividend stock to see if and when its business fortunes may turn around.
More importantly, find out if Cummins is an attractive dividend growth stock at today’s share price or whether investors would be better off waiting for a correction before initiating or adding to their positions.