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Cummins (FRA:CUM) 5-Year Yield-on-Cost % : 3.47 (As of Jun. 28, 2025)


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What is Cummins 5-Year Yield-on-Cost %?

Cummins's yield on cost for the quarter that ended in Mar. 2025 was 3.47.


The historical rank and industry rank for Cummins's 5-Year Yield-on-Cost % or its related term are showing as below:

FRA:CUM' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 2.57   Med: 3.75   Max: 5.99
Current: 3.47


During the past 13 years, Cummins's highest Yield on Cost was 5.99. The lowest was 2.57. And the median was 3.75.


FRA:CUM's 5-Year Yield-on-Cost % is ranked better than
65.46% of 1969 companies
in the Industrial Products industry
Industry Median: 1.96 vs FRA:CUM: 3.47

Competitive Comparison of Cummins's 5-Year Yield-on-Cost %

For the Specialty Industrial Machinery subindustry, Cummins's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Cummins's 5-Year Yield-on-Cost % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Cummins's 5-Year Yield-on-Cost % distribution charts can be found below:

* The bar in red indicates where Cummins's 5-Year Yield-on-Cost % falls into.


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Cummins 5-Year Yield-on-Cost % Calculation

Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.

Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.

Therefore, Yield-on-Cost of Cummins is calculated as

Yield-on-Cost=Dividend Yield %*(1+Dividend Growth Rate)^5

Cummins  (FRA:CUM) 5-Year Yield-on-Cost % Explanation

Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.


Cummins 5-Year Yield-on-Cost % Related Terms

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Cummins Business Description

Address
500 Jackson Street, Box 3005, Columbus, IN, USA, 47202-3005
Cummins is a leading manufacturer of diesel and other engines used in heavy- and medium-duty commercial trucks, off-highway equipment, and locomotives, in addition to prime power and standby generators. The company also sells powertrain components, which include filtration products, transmissions, turbochargers, aftertreatment systems, and fuel systems. Sales are approximately 60% US and Canada and 40% rest of world. Much of Cummins' foreign sales (China, India, and so forth) are through joint ventures. The company operates 650 distributors and over 19,000 dealer locations across 190 countries. Cummins' business model is unique as it competes with many of its heavy-duty truck manufacturer customers, who also make their own engines.

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