1) Cummins Inc. (NYSE:CMI) stock jumped 1.51% this morning on news that the company will hike its dividend by 52%, or 14 cents per share. The shareholder payday will cost the company an estimated $27 million a quarter. CEO Tim Solso said of the reasons for the increase, “Cummins had its most profitable year in its history in 2010 and we expect that 2011 will be an even better year. As a result, we are further rewarding our shareholders for their support.” In April the company’s first-quarter profit more than doubled on strong demand in the truck market.
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2) KLA-Tenor (NASDAQ:KLAC) shares are down -3.30% this morning after the company announced that it will increase its quarterly payout to shareholders by 40%. The increase will up the company’s per share payout by ten cents, ($.25-$.35 per share) costing KLAC an estimated $16.8 million per quarter. Chief Executive Rick Wallace added, “This increase in the level of the dividend reflects our market leadership and management’s confidence in our long-term strategies, as well as our commitment to rewarding shareholders for their investment in KLA-Tencor.”
Also making a major inside move this morning is News Corp. (NASDAQ:NWSA), the media magnate recently embroiled in a scandal over its subsidiary “News of The World” alleged hacks into cell phones of celebrities, politicians, British royalty, and missing children. Today the company announced that its board has approved a share repurchase totaling $5 billion, an increase of $1.8 billion to the businesses existing repurchase arrangement. NWSA stock is up 1.74% today, though has slid by almost -13% in the past week as details of the scandal became widely circulated, prompting the company to shutdown its troubled tabloid.