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Cummins and Fastenal raise dividends as data centers boost demand

Cummins lifted its quarterly dividend to $2.20 after a 10% increase, while Fastenal raised its dividend 8.3% to 26 cents per share.

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Several large industrial and utility companies are increasing dividends as 2026 share performance and demand tied to data centers and industrial infrastructure remain supportive, according to MarketBeat Ratings.

Cummins, with a market capitalization near $90 billion, announced a 10% dividend increase that moves its quarterly payout to $2.20, with a record date of Aug. 21 and a payable date of Sept. 3. MarketBeat Ratings noted that the company’s North American power generation revenue rose 23% last quarter, helped by data center demand, offsetting a 4% decline in its engine business. Cummins is also described as having strong dividend sustainability, with a payout ratio around 41.5%, which analysts expect to improve to about 30% based on current year earnings estimates.

Fastenal, whose market capitalization is above $50 billion, also raised its dividend, increasing it by 8.3% so the quarterly payout now sits at 26 cents per share. The outlet said Fastenal is up 13% so far in 2026, and that its latest quarter delivered its fastest revenue growth since 2022, with sales rising nearly 15% year over year. MarketBeat Ratings added that management pointed to improving market conditions but emphasized that market share gains versus competitors are driving results.

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