After a 55.3% gain in 2016, shares of Cummins (CMI) no longer pay enough to remain in my Dividend portfolio. The huge appreciation of 2016 means the stock now yields just 2.98% and in this portfolio I look for yields of 4% or more. (With 5% as the ideal–but hey this isn’t a perfect market.)
I’m keeping Cummins in my long-term 50 Stocks portfolio. It’s been a pick for that list since May 3, 2013 when it traded at $100.44. At the January 11 close the gain since that initial pick in that portfolio has been 40.17%.
For the 2016 performance of my Dividend portfolio and the challenges facing dividend investors in 2017, see my post from January 11. The record date for Cummins’ last dividend was November 21, 2016. If 2017 follows form, the record date for the next dividend will be sometime around February 10.