Cummins Inc. (CMI), Navistar International Corp (NAV), PACCAR Inc (PCAR): This Stock Has Just Stepped on the Gas

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The real gain for investors

Cummins’ competitive advantage and growth story look compelling, but there’s another great reason investors should give the stock a serious thought: Cummins recently increased its dividend by 25%. With that, Cummins’ dividend has grown 237% in the past four years, and the stock is yielding a decent 2% at current prices. That apart, Cummins is also running a $1 billion share-buyback program to maximize shareholder value. I think Cummins’ stock makes a superb buy, even if it’s less than 5% away from its 52-week high.

The article This Stock Has Just Stepped on the Gas originally appeared on Fool.com and is written by Neha Chamaria.

Fool contributor Neha Chamaria has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Cummins, Ford, PACCAR, and Westport Innovations.

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