This Mid Cap Stock To Pay 525% Final Dividend, Record Date Declared

Dividend is a share of profits and retained earnings that shareholders receive from a company. As and when a company generates profits and gathers retained earnings, the company either reinvest them in business or pay out to shareholders in the form of dividend.

Cummins India Ltd. has announced its final dividend and record date. Given below are the key details that investors must not miss:

1. Cummins India Ltd declares 525% final dividend and record date

Cummins India Ltd announced final dividend and record date. The board of directors of Cummins in its filing dated 26 May, 2022 said, "We wish to inform the exchange that the Board of Directors have recommended Final Dividend of Rs. ·10.5/- (525%) per equity shares on 277,200,000 equity shares (Face Value Rs. 2/- each fulry paid up) for the financial year ended on March 31, 2022 in addition to the interim dividend of Rs. 8/- per share declared on February 10, 2022. The said final dividend, if approved by the Members at the Annual General Meeting, will be paid on September 06, 2022."

Ex-Dividend Date and record date: The ex-dividend date is August 2, 2022 and the record date is August 3, 2022.

2. Stock Outlook

The current market price of the share is Rs 1008.45 apiece. The 52-week high is Rs 1162 apiece and 52-week low is Rs 747 apiece. The P/E is 29.94 which is higher than the sector P/E of 28.87. EPS is 33.68. Recently, brokers have upgraded the recommendation for the stock.

It has emerged as a company with high TTM EPS growth. The stock has given a return of 20.11% in 1 year and a return of 12% in 5 years.

3. Dividend record

The company has a good dividend track record and has regularly declared dividends in the last 5 years. The company has declared a final dividend of 525% on May 26 i.e. Rs 10.50 or Rs 10.5000 per share final dividend.

For the year ending March 2022, the company had announced an equity dividend of 925% amounting to Rs 18.5 per share. If the CMP of stock is considered, the dividend yield is 1.83%.

4. About the company

It is an integral part of Cummins Inc. Group USA. It came into existence in 1962 and emerged as the largest entity of Cummins in India. Cummins India Ltd is country's leading manufacturer of diesel and natural gas engines, according to the official website. It has a market capitalization of Rs 27,954 crore.

There are several advantages that investors can get if they invest in the stock. It is almost debt free. It is expected to give a good quarter.