5 Best Dividend Stocks to Buy According to Billionaire Stan Druckenmiller

4. Cummins Inc. (NYSE: CMI)

Number of Hedge Fund Holders: 45
Dividend Yield: 2.08%

Cummins Inc. (NYSE:CMI) specializes in the design, production, and distribution of electric power generation systems, diesel and natural gas engines, and other engine-related products like air handling systems, controls, fuel systems, and emissions solutions. The company received annual certification from the California Air Resources Board for the 2021 Allison Hybrid 40/50 Electric Propulsion system paired with the Cummins B6.7 and L9 diesel-electric hybrid engines

The company recently appointed Sherry Aaholm the Chief Digital Officer after previously serving as the company’s Chief Information Officer. The newly appointed Earl Newsome will now fill this position.

Recently Cummins Inc. (NYSE:CMI) launched the latest B6.7 Performance Series engine that delivers near-zero emission levels of NOx and PM. The engine also has the in-built stop-start capability that helps operators reduce running costs and reduce the impact on the environment. The engine is expected to attract the market especially with the current stringent global warming measures calling for cleaner energies, thus giving it an edge over the market. This alone could be a key growth factor, thus securing the company’s spot in the list of the top dividend stock picks.

Recently, Jefferies upgraded Cummins’ stock to “Buy” from “Hold” raising the price target to $325 from $250. Jefferies EPS estimates for 2021 and 2022 are 6% and 4% ahead of consensus and expects 5 to 10% YoY improvement in China for 2021. Cummins also entered into partnership with Daimler for medium duty engine systems.