Cummins increases dividend by 40 percent

Cummins’ Board of Directors has increased the company’s quarterly cash dividend on common stock by 40 percent to 17.5 cents per share, up from 12.5 cents per share. The dividend is payable on Sept. 2, 2008 to shareholders of record on August 22.

The dividend increase is Cummins’ third since July 2006. During that time, Cummins has increased its dividend rate by 133 percent on a split-adjusted basis. From 2003 to 2007, Cummins produced an average annual shareholder return of 58 percent.