“Back in 1919, Clessie Lyle Cummins developed an engine that was state-of-the-art for its time in the very new trucking industry. Cummins, Inc. (CMI) has been on the cutting edge of the trucking industry’s technology ever since. A good example of their strength in innovation is the high quality and superb design of their truck engines. It is the only type of truck engine in existence that meets standards set by the Environmental Protection Agency.
“The stock took a sharp drop because revenues were flat in the second quarter, due to the global economic slowdown. Despite this news, Cummins reported its return on equity was 32% in 2011, which makes it among the top companies in revenue. In fact, Cummins felt confident enough to raise its dividend, which puts it at 2%, better than most bonds you can currently buy.”
Russ Kaplan, Heartland Adviser, russ@russkaplaninvestments.com, July 20, 2012
