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.
Source: TalkMarkets
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