Industrial and Utility Giants Raise Shares as Data Center Tailwinds Build

Some of the world’s biggest players in the industrial and utilities sectors are increasing their profits. The rise in their shares is consistent with strong share price performance in 2026, with many names benefiting from pent-up demand in data centers and industrial infrastructure. Two names are also in a strong position when it comes to the stability of the shares, while analysts expect the other to significantly improve its position.

Cummins Raises Dividend 10% as Data Center Demand Pushes Shares

Cummins (NYSE: CMI) is widely known for producing heavy duty truck engines. With a market capitalization of nearly $90 billion, Cummins is one of the 25 most valuable industrial stocks in the United States. Cummins has shown very strong performance recently, with a return of nearly 50% in 2025 and rising to more than 20% in 2026.

This is due to the Cummins division that sells backup power generators to the data center industry. The North American energy company’s revenue rose 23% last quarter, driven by data center demand, which helped offset a 4% decline in its engine business.

Cummins recently announced a massive 10% dividend increase. Its quarterly payout will rise to $2.20, with a record date of Aug. 21 and a due date of 3 September. With this increase, Cummins’ annual forward yield is estimated at 1.37%. While not huge, this yield is firmly above the S&P 500 Index’s yield of nearly 1%.

Cummins has strong dividend sustainability, with its payout ratio around 41.5%. Based on the current year’s earnings estimates, analysts expect this figure to improve significantly to around 30%. Overall, Cummins provides a pick and shovel game in data center construction, with reasonable yields and increased, safe profits.

Quick Post Strongest Growth in Years, Significant Profit Increase Issues

Fastenal (NASDAQ: FAST ) is another big player in the industrial sector, with a market capitalization of more than $50 billion. The company distributes industrial and construction materials, including hardware such as bolts, nuts, and screws. Fastenal has posted a solid 13% return year to date through 2026, beating the S&P 500’s 10% return. Fastenal posted its fastest revenue growth since 2022 in its latest quarter, with sales up nearly 15% year over year. The company noted that market conditions have been improving, but stressed that its competitive market advantages are driving its success.

Fastenal also returns significant capital to shareholders. After increasing its dividend by 8.3%, the company’s quarterly payout now sits at 26 cents per share. Additionally, its dividend yield is up to 2.3%. Fastenal plans to pay its next dividend on Aug. 25 to shareholders of record as of late July 28.

However, it is important to note that Fastenal’s payout ratio has increased to 88%. Nevertheless, it is interesting to see that, based on next year’s estimates, analysts expect the number to drop significantly to around 75%. Investors should monitor whether Fastenal’s business development continues and allow its dividend payout ratio and earnings to reach this attractive, but still high, level.

Duke Supports Strong Yield With Recent Dividend Increase

Duke Energy (NYSE: DUK ) is one of the largest US stocks. In fact, with a market capitalization of over $90 billion, Duke is the third most valuable stock in the US and top 10 globally. Duke’s total return in 2026 sits near 9%, which is a good showing in the low-end utility sector.

Duke experienced a strong 9.7% increase in its adjusted earnings per share (EPS) last quarter, with the figure rising to $1.93. Duke aims for moderate but stable annual earnings growth between 5% and 7% by 2030. The company believes it can reach the top half of that range as early as 2028. This could happen as the company delivers a large load capacity, having signed 7.6 gigawatts of Power Service Agreements with data center customers.

Duke issued a discount of 1.9%. However, the stock’s dividend yield is much higher, now approaching 3.45% going forward. Duke’s $1.085 per share dividend has a record date of Aug. 14 and the due date of Sept. 16. Duke’s payout ratio sits at a sustainable 65%, especially in the context of the utilities sector, where payout ratios are often elevated. Based on next year’s estimates, analysts predict that this figure will drop to around 60%.

Overall, Duke offers a great yield in the field of defense equipment and also shows that it can play a role in data center-driven surveillance.

Analysts Eye Gain on Cummins, Expectations for Engine Business Increase

Analysts continue to show a strong level of optimism for these individual equity investors. Cummins still has an important datacenter growth angle, but its engine business remains important. Fastenal benefits from improving industrial performance and market share gains, while Duke Energy offers a protective utility profile with long-term electricity demand for heavy-duty customers.

For income investors, the appeal is dividend growth supported by real performance catalysts, although each stock carries its own risks.

Companies mentioned in this article:

Company	Current Price	Price Changes	Dividend Yield	The P/E ratio	Consensus ratio	Consensus Price Target
Cummins (CMI)	$656.95	+2.7%	1.34%	34.09	Buy Medium	$740.07
Fastenal (FAST)	$44.62	-0.3%	2.15%	37.83	Hold on	$48.83
Duke Energy (DUK)	$124.78	-0.9%	3.41%	19.10	Buy Medium	$138.47

About Leo Miller

Experience

Leo Miller has been a contributing writer for DividendStocks.com since 2024.

• Professional Background: Leo Miller is a financial writer with a background in investment research and market analysis. He held roles as an investment research partner at Laird Norton Wetherby and as a research analyst at Sungarden Investment Publishing, where he gained extensive experience in valuation and portfolio strategies.
• Confirmation: He holds a Bachelor of Business Administration in Finance from the University of Washington’s Foster School of Business, a top-ranked public business school. Passed the CFA Level II exam.
• Financial Experience: Leo started researching and investing in gold mining stocks in 2019 and started writing about finance and investing in 2021. He joined DividendStocks.com as a contributing writer in 2024, where he covers both stocks and ETFs. A strong research base and direct exposure to the financial markets shape his opinions.
• Writing Focus: He specializes in technology stocks, dividend-paying companies, ETFs, and value-oriented opportunities. His work emphasizes clarity, practical understanding, and education for investors at all levels.
• How to Invest: Leo follows a disciplined, long-term investment strategy based on fundamental analysis, with a strong focus on economics, industry and sector research, and passive investment principles.
• Motivation: Leo finds the stock market endlessly compelling and enjoys the challenge of separating meaningful data from the noise. He is passionate about analyzing what makes businesses stand out—and sharing that insight to guide informed investment decisions. As he puts it, “Strong analysis requires separating the wheat from the chaff.”
• Fun fact: Leo credits his grandfather with sparking his interest in investing and is a lifelong animal lover.
• Areas of Expertise: Fundamental analysis, economics, industry and sector analysis

Education

Bachelor in Business Administration, Finance, Foster School of Business at the University of Washington