JACKSON, Mich. - CMS Energy (NYSE:CMS)'s Board of Directors announced an increase in the quarterly dividend rate, raising it to 51.50 cents per share from the previous 48.75 cents. This change marks an enhancement in shareholder returns, correlating with the company's consistent performance and strategic accomplishments.
The newly declared dividend translates to an annualized yield of 3.6 percent, considering CMS Energy's closing stock price of $57.28 on Tuesday. Shareholders on record as of February 12, 2024, will be eligible for the dividend, which is scheduled for payment on February 29, 2024.
Garrick Rochow, the president and chief executive officer of CMS Energy, attributed the dividend increase to the effective implementation of the company's operational strategy. The adjusted dividend rate will result in an annual payout of $2.06 per share.
CMS Energy (NYSE: CMS), headquartered in Michigan, primarily operates through its electric and natural gas utility, Consumers Energy. Additionally, the company is involved in independent power generation businesses. The organization's commitment to delivering value to its shareholders is evidenced by this recent dividend increment.
The announcement is based on a press release statement from CMS Energy. Investors seeking further details regarding the tax implications of dividend distributions can refer to the Tax Information section on the CMS Energy website. For more insights and updates, interested parties are encouraged to visit the company's Investor Relations section to sign up for email alerts.
InvestingPro Insights
In light of CMS Energy's recent dividend increase, a glance at the real-time data and InvestingPro Tips offers a deeper understanding of the company's financial health and investor sentiment. CMS Energy operates with a notable debt burden, yet it has managed to raise its dividend for 17 consecutive years, showcasing a strong commitment to returning value to shareholders. This is further reinforced by the company's ability to maintain dividend payments over the same period.
Analyzing the company's market cap of approximately $16.68B and a P/E ratio of 22.5, investors can gauge the market's valuation of CMS Energy relative to its earnings. The revenue for the last twelve months as of Q3 2023 stands at $7.79B, with a gross profit margin of 34.66%, indicating a robust ability to generate earnings above its service costs. Despite the recent downward earnings revisions by analysts for the upcoming period, CMS Energy remains profitable, with a dividend yield of 3.41% as of the last available data.
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