Cummins Inc. announced Tuesday a new $2 billion stock repurchase program, which will kick in once the previous $1 billion program is completed. The stock fell 0.5% in afternoon trade. Based on current share prices, the new buyback program would represent about 13.2 million shares, or about 8.1% of the shares outstanding. Separately, the engine maker declared a regular quarterly dividend of $1.14 a share. At current stock prices, that implies a dividend yield of 3.00%, compared with the yield on the SPDR Industrial Select Sector ETF of 1.78% and the implied yield for the S&P 500 of 1.90%, according to FactSet. Cummins shares have lost 14% year to date, while the industrial ETF has gained 3.4% and the S&P 500 has advanced 8%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
Latest posts by Market Watch (see all)
- Cannabis Watch: How one exchange became the go-to destination for cannabis stocks - December 15, 2018
- Key Words: ‘People are underinvested,’ and they’re going to miss out, warns Wall Street vet - December 15, 2018
- Market Extra: How a choppy stock market shows ‘neither bulls nor bears’ are in charge right now - December 15, 2018