Dividend Increase: CMI

Cummins (CMI) is increasing its quarterly dividend by 25.0%, from $0.50 to $0.625 per share, putting the company on track for its 8th consecutive year of dividend growth (news release). Given that I own 15 shares of CMI, my quarterly dividend increases from $7.50 to $9.38 and my yield on cost becomes 2.83%. The extra $7.52 in annual dividend income raises my forward 12-month dividend total to $2,425. Thus far this year, there have been dividend increases for 19 of the 28 stocks in my portfolio, although this has been the largest percent increase.